Monetary Policy Council cuts rates as tentative signs of an upturn emerge

The Monetary Policy Council (RPP) exceeded all expectations and cut the main intervention rate by 50 points, and both other rates by 100 points. "Inflation is low and remains stable. The factors limiting inflation have strengthened within the last month," runs the official justification for the decision. The head of the RPP said the council had noticed some indications of an economic revival, but confirmation of such signals should be awaited in the coming months. "The export results for July will be announced on Friday. However, I can say that the data will confirm the positive trends of the last month. Even strongly confirm them," revealed Leszek Balcerowicz. The RPP criticized the government for its lack of proposals concerning reforms of public expenses that would allow the budget deficit to be limited. It also mentioned international threats, including the postponed economic recovery in the USA and EU countries, particularly in Germany, and high oil prices resulting from the Iraq conflict. (Rzeczpospolita, p. B1, Puls Biznesu, p. 7) M.K.