Central Bank too restrictive towards monetary policy says Finance Minister

Minister of Finance Andrzej Raczko thinks that the Central Bank was too restrictive in its monetary policy and that there was still much room for substantial interest rate cuts of the Monetary Policy Council (RPP), which would help the Polish economy in its current economic condition. "Interest rates are still high in Poland, while the stabilization of inflation allows for further rate cuts," said Raczko during a conference of the World Bank and the International Monetary Fund in Dubai. The opinion is in accordance with that shared by the government in terms of the level of interest rates. According to the 2004 budget draft, the main interest rate of the National Bank of Poland would amount to on average 3.7% in 2004 and remain within the level of 4% over the next two years. However, Minister Raczko announced he was not going to interfere with the decision of the RPP or put any pressure on it. (Parkiet, p. 8) M.M.