Interest rate cuts likely as figures show economy growing at a snail's pace
Economic growth is likely to be slower then expected, given the weak
industrial output figures in September. As the Central Statistical Office
(GUS) reported, production in the industry sector dropped by 0.6% compared
to August, or by nearly 3.8% since September 2000. "Quicker growth may come
later, in the fourth quarter. We will have to adjust our GDP growth forecast
for 2001 from 2.5% to 2%" said Monetary Policy Council (RPP) member Dariusz
Rosati. He also admitted that this data will be discussed by the RPP during
its meeting on October 24-25 to consider cutting the 14.5% interest rates.
Such interest rate cut is even more likely given the recent decrease of the
Producer Price Index growth rate. "Now we can be sure that RPP will cut the
interest rates", commented Miroslaw Gronicki, head economist of BIG BG.
(Puls Biznesu, p.30, Prawo i Gospodarka, p. 3, Reuters) M.K.
