Monetary Policy Council keeps interest rates steady

According to the Council, in the short run the CPI will be clearly lower than the maximum forecast of 3.8% due to lower than anticipated prices of fuel and food. However, according to the RPP and despite of an expected lowering of economic growth, there may be a gradual growth in pricing leading to increasing inflation in the mid-term run. "The Council believes that growth of inflation will most likely be moderate," said Slawomir Skrzypek, Chairman of the RPP. According to Marcin Mrowiec, an analyst with Bank BPH, this marks a clear shift in the stance of the Council on increasing the interest rates, which are now more likely to go up later rather than sooner. (Puls Biznesu, pp. 1, 6) M.M.