Interest rate cut expected today

According to analysts, the Monetary Policy Council (RPP) is likely to cut in terest rates by 25 basis points during a meeting scheduled for today. This s hould soon be followed by further cuts, as there is no threat of inflationar y pressure and the economy is still in bad condition. "After publishing econ omic data for December, we even have signals of economic stagnation," said P KO BP economist Lukasz Tarnawa. Most forecasts predict that inflation will c ontinue to fall from December's level of 0.8% to about 0.5%-0.6% in April. "Inflation is not a problem this year, but over the next few years it might rise substantially due to economic recovery in Poland and abroad. As a resul t of this the RPP should cut interest rates carefully and slowly over the lo ng term," said Societe Generale economist, Marcin Mroz. (Parkiet, p. 5; Rzec zpospolita, p. B7) M.M.