Investors keep zloty high despite Finance Minister's claim it is too strong

Despite pleas by Finance Minister Marek Belka, the zloty yet again strengthened to zl. 4.03 to the dollar yesterday, as the U.S. dollar was losing against most currencies and foreign investors are anticipating another interest rate cut in Poland next week. Belka repeated his belief that the zloty is overvalued, but yet again foreign investors' demand for the zloty overpowered his words. Most analysts believe the Monetary Policy Council (RPP) should lower interest rates at its upcoming meeting, as industrial output remains stagnant, while inflation keeps falling to new record lows, reaching 3.3% in March. (Prawo i Gospodarka, p. 11; Zycie, p. 8) T.J.