Inflation drops in November, raising new hopes for an interest rate cut

According to the Central Statistical Office (GUS), year-on-year inflation dropped to 9.3% in November. Tadeusz Chroscicki from the Government Center for Strategic Studies (RCSS) expects inflation to drop to below 8% in January 2001 and 7%-7.5% by the end of the first quarter of 2001. Monetary Policy Council (RPP) member Dariusz Rosati said that the decrease in inflation in November constitutes an opportunity for loosening monetary policy, meaning a cut in interest rates. "It does not mean, however, that RPP will change its restrictive monetary policy during this Wednesday's meeting," said Rosati. According to fellow RPP member Cezary Jozefiak there is a small chance of lowering interest rates at the beginning of 2001. (Gazeta Wyborcza, Dec. 16-17, pp.1, 24) M.M.