Balcerowicz predicts rate cuts will bring economic upturn in second quarter

Central bank and Monetary Policy Council (RPP) head Leszek Balcerowicz said yesterday low inflation and poor production output indicators in January had been anticipated in deciding the latest interest rate cut, announced last month. "The results were in line with expectations made before we ordered the previous cuts. This concerns inflation as well as the production fall," Balcerowicz told reporters. The National Bank of Poland (NBP) governor said Poland's slow economic growth could pick up in the second quarter, earlier than expected by most analysts. "Then we can expect an impulse from an improving external climate as well as from the series of past rate cuts," Balcerowicz said. (Parkiet, p. 7; Reuters) M.T.