Belka describes as conservative RPP decision to cut rates by 150 points

The Monetary Policy Council (RPP) yesterday cut the National Bank of Poland's (NBP) key interest rate by 150 basis points, to 10%. This was the seventh decrease within the last 12 months. The emergency lending lombard rate was reduced by 200 points to 13.5%, the discount rate was lowered by 200 points to 12%, and the overnight deposit rate was cut by 100 points to 6.5%. Explaining the decision, NBP governor Leszek Balcerowicz said the premise was December's fall in inflation. Finance Minister Marek Belka described the interest rate reduction as a conservative move. But he said he was satisfied that it showed the beginning of support for the government's economic program. (Prawo i Gospodarka, pp. 1, 2; Reuters) M.T.