GDP forecasts optimistic, inflation at post-communist low

Poland's GDP is seen growing at an annual rate of 2.5% in the second quarter accelerating to 4% in the last months of this year, a senior central banker said yesterday. Monetary Policy Council (RPP) member Dariusz Rosati said in an interview that he expected average annual GDP growth to amount to about 3% this year. Rosati declined to give his view on short-term interest rate movements but added, "If there are no external shocks for the economy, such as a weak harvest or international problems, then by the end of the year there may be more [rate cuts]." Poland's main interest rate is now at 5.75%, while annual inflation hit a record low of just 0.3% in April. Analysts expect the RPP to cut its main rate again during its next policy meeting on May 27-28. (Reuters) K.Ż.