Interest rate increase to counter rising inflation in the wake of EU a ccession

Analysts are almost sure that the Monetary Policy Council (RPP) will raise interest rates in a few days time by 25 to 50 points. Inflation in June was 4.4% and, as predicted, it rose to 4.6% in July. After this news was spread by the Polish Statistical Office (GUS) Złoty's position on the currency market declined slightly. After the recent increases in interest rates Deputy Prime Minister Jerzy Hausner, Finance Minister Mirosław Gronicki and most analysts believed that inflation would reach its local maximum in July and then it would gradually fall. Experts are sure that price increase was an effect of Poland entering the EU. As foreign consumers drive demand for Polish food its price is growing. "You will not have to wait long for the next increase [of interest rates]. I think that it will not be significant, 25 base points at most," said BRE Bank's chief economist Janusz Jankowiak. (Puls Biznesu, p. 5) D.W.