Markets confident of interest rate cut announcement from RPP tomorrow

Analysts are confidently predicting that the Monetary Policy Council (RPP) will announce a cut of at least 1.5% in interest rates tomorrow. The majority of RPP members are said to support a cut, in view of the rapid fall in the level of inflation. According to Maciej Reluga, an economist with ING Bank, "The market has been anticipating such a decrease and has already managed to consume it." However, a definite argument against a cut would be the high budget deficit. RPP member Dariusz Rosati said in an interview with Prawo i Gospodarka, "All the arguments speak in favor, besides the only one - the situation of the budget." (Prawo i Gospodarka, p. 1; Gazeta Wyborcza, p. 18) P.W.