July fall in inflation raises possibility of change of policy by the RPP

The Finance Ministry is forecasting a fall in the annual rate of inflation in July, to 5.2%. This prognosis is lower than an earlier one, by 0.1%. "The forecast fall in inflation increases the probability of a change in monetary policy by the Monetary Policy Council (RPP)," Dariusz Rosati, a member of the RPP, explains. However, analysts are cautious about predicting a monetary easing at the RPP's August 21 - 22 meeting, citing the unclear fiscal outlook as a potential key argument against a cut. (Prawo i Gospodarka, p. 2; Reuters) A.K.