Market surprised by RPP decision to hold interest rates

Some economists believe that as a result the RPP has undermined its credibility, while others say Council's decision was a tacit admission that it got its inflation projection wrong. "Over the course of September the Council stopped believing in the forecast, in which it had faith in a month ago. However, nothing happened that would justify them changing their minds," said Jacek Wiśniewski an analyst with bank Pekao SA. In explaining its decision, the RPP announced that the August projection was unrealistic, as the pace of wage growth and investment was lower than expected. (Parkiet, p. 1) M.M.