IMF: Toughen fiscal policy to ease monetary policy, lower rates

Belanger said Poland should lower interest rates as keeping them high may negatively influence export and drive up import. "You must tighten fiscal policy so that monetary policy can be eased and interest rates brought down," said Belanger. "The possibility of a interest rate slump will curb the inflow of speculative capital from abroad." Additionally, the IMF didn't recommend balancing the budget this year, but in 1999. Belanger also urged the government to put large state-owned firms under control to stem excessive wage hikes, as is the case now. (Prawo i Gospodarka, page 6)