Economy expected to grow 3%-3.5% in 2003

Monetary Policy Council (RPP) member Dariusz Rosati said yesterday that economic growth was expected to increase to 4% in the fourth quarter of 2003 and to 3%-3.5% for the whole year, a rise from 2002 of 1.3%. Rosati told Reuters that, with year-on-year inflation likely to stabilize at 2%-2.5% towards the end of 2003, the central bank would have scope to continue its policy of gradual, small interest rate cuts. Faster growth will be fuelled by a pick-up in corporate investment, sustained domestic consumption, and exports. "The new RPP will take over in better circumstances, the economy should be growing at 4% with unemployment falling, inflation should be low and rates probably lower. I see little danger from its decisions," he said. (Reuters) M.M.