Miller eases stance on central bank

Prime Minister Leszek Miller softened his hostile rhetoric against the central bank on Sunday but kept intact the message that the National Bank of Poland (NBP) should stop damaging the limp economy with high interest rates. Miller offered the central bank no protection if legislators moved to curb its independence to win deep monetary easing, as some ruling coalition politicians are threatening to do. "Without rate cuts our economic recovery plan will not succeed," Miller said. Central bankers say deep easing will not happen until they believe the government is ready to limit spending and implement structural reforms which, according to them, are key to boosting growth. The prime minister also said he fears violent discontent over Poland's ailing economy. Low pay, unemployment and the hopelessness of life in underdeveloped rural areas could be fodder for demagogues and opportunists ahead of local elections this year, repeating protests that brought Poland to a halt in 1999, he said. The unrest would come at an unfortunate time, Miller added, giving the impression Poland was unstable just as it enters difficult last-stage EU accession talks due to end by December. (Reuters) A.K.