Interest rates remain unchanged as National Bank assesses economic climate

The new president of the National Bank of Poland (NBP), Leszek Balcerowicz, presiding over his first Monetary Police Council (RPP) meeting yesterday, said it was waiting for a final version of the budget before considering cutting interest rates. According to RPP, there is still too much uncertainty in the Polish economy and thus it is impossible to determine whether the recent decline in inflation is permanent. RPP needs to know first of all how budget funds will be allocated during the first 3 months of the year and how the deficit will be financed. RPP is also interested in the governments strategy for coping with the domestic food shortage, which could cause prices to rise. The next RPP meeting will take place in late February and the likelihood of interest rate cuts may be greater. (Rzeczpospolita, p. A1) A.D.