Monetary Policy Council leaves interest rates unchanged, as anticipated

At its Thursday meeting, the Monetary Policy Council (RPP) decided to keep basic interest rates unchanged, as the majority of analysts had predicted. In doing so, the council resisted political pressure to cut rates. The interest rates now range from 17%, which is the key market rate, to 21%, the emergency lending rate. Among the reasons for not cutting the rates are the growing budget deficit, and the surprisingly high increase in food prices in the first half of April. According to Reuters, the MPC maintained its "neutral" bias for future policy moves. The council' s decision had an immediate impact on the money markets, with the zloty initially surging to zl.3.9759 to the dollar before closing at 4.0164. (Reuters; Prawo i Gospodarka, p.1,9) M. S.-C.