Government & macro

   Outgoing central bank governor Hanna Gronkiewicz-Waltz said that interest rate cuts will likely be limited in 2001 and warned the government against using windfall revenue to finance extra spending. Joining the European Bank of Reconstruction and Development later this month, Gronkiewicz-Waltz said rates would likely be kept high to help the Monetary Policy Council (RPP) reach its medium-term target of 4% inflation by 2003. "In December inflation could be in the range of 6-7%, which for monetary policy will most probably mean that there won't be large cuts in interest rates because the RPP's main goal is to meet the mid-term target," Gronkiewicz-Waltz said.

   Transportation Minister Jerzy Widzyk has requested a formal investigation into the tender for Warsaw Okecie Airport's second terminal in light of allegations that the zl. 300 million-zl. 400 million ($71 million-$95 million) tender was not conducted fairly. Despite a commission member's claims that foul play was involved in the deal, Widzyk has made assurances that the commission is doing its job competently. Justice Minister Lech Kaczynski said the investigation would proceed due to "threats of bribery." Kaczynski also indicated that certain services might be responsible for corruption, possibly referring to the intelligence services. Maciej Kalita, head of Porty Lotnicze, the tender administrator, has confirmed that a shortlist of seven companies, narrowed down from 14, have been invited to submit detailed offers. (Gazeta Wyborcza)