Interest rate decision expected today

The last report by RPP painted the situation on the labor market as tense, and according to the National Bank of Poland net inflation in December amounted to 1.7%, up from 1.5% in November. If the Council goes with the expected increase, this will push interest rates to 5.25% - the fifth interest rate increase in the cycle commenced in April, 2007. Furthermore, analysts expect the American Federal Reserve to cut their interest rates by another 50 basis points, after cutting them by 75 basis points on January 22. A simultaneous decision to increase interest rates in Poland and to cut them in the US will lead to further strengthening of the złoty. (Dziennik, The Wall Street Journal Polska, p. 2; Rzeczpospolita, p. B12) A.K.