High interest rates and strong zloty expected to reduce economic growth

Credit Suisse First Boston (CSFB) has revised downwards its forecast for Poland's economic growth in 2001. The latest CSFB report suggests that the economy will grow by 2%, down from the earlier forecast of 2.5%. CSFB says the main factors contributing to the more pessimistic outlook are the persistently high interest rates and the strong zloty. Despite the year-on-year inflation forecast rising to 6.8% from the earlier 6.6%, CSFB still thinks an interest rate cut is possible later this month. (Gazeta Wyborcza, p. 28) J.K.