Balcerowicz predicts growth of 2.5% - more cuts may be on the cards

Central Bank Governor Leszek Balcerowicz said that the reasons for the recent rate-cuts were a weak recovery and record unemployment as well as poor export markets, especially in Germany. Balcerowicz forecast economic growth at 2.5% this year, which is below the government's own target of 3.5%. He also said that the door was left open to further rate cuts in an easing cycle dating back two years, when rates peaked at 19%. "If we see any moves at all, then the strategy of gradual steps will be kept," Balcerowicz told a news conference. (Reuters) K.Z.