Cautious, small rate reduction will continue to be the norm says RPP member

Monetary Policy Council (RPP) member Dariusz Rosati said on Thursday that the Council would stick to its policy of small rate reductions if reductions are prudent in the future. This remark was largely expected by financial markets. "Given the current situation and the line-up of the RPP it is hard to imagine cuts deeper than 25 base points," Rosati said in an interview for public television and commenting after Thursday's rate reduction, which cut the main market rate by a quarter point to a new low of 5.75%. The RPP switched to quarter-point reductions in its main interest rate last November. The term of nine out of the ten RPP members, including Rosati, will run out early next year. (Parkiet, p. 7; Reuters) J.K.