Monetary Policy Council meeting leaves interest rates unchanged

In October inflation was at the level of 1.6%, being 0.1% below the lower inflationary target of the Council. There will not be much change next year, but in 2006 the RPP expects inflation will go up to 2.5%. The Council has not changed its monetary policy stance, which is still maintained as mild. Major factors attracting the attention of the RPP were high oil prices and rising wages. In October the average number of workers in companies employing over 50 persons was 6.4% higher than in the respective period of 2005. However, the Council believes the growth of salaries is still average and indicates there were no remuneration pressures due to rising prices. (Parkiet, p. 9) M.M.