Monetary Policy Council (RPP) announcing its interest rate decision today

Today the Monetary Policy Council (RPP) will decide whether to cut interest rates or to hold off for another month. The move to cut interest rates would be most welcome by investors complaining that under circumstances when year-on-year inflation has reached 6%, the lowest level predicted by the RPP, the rates remain punishingly high. According to the Treasury Ministry, the consumer price index will continue to fall for the next two months and therefore the price of credits should also be lowered. This would result in the revival of the market and help to extend payrolls. "I think the RPP will not cut interest rates today, due to the high budget deficit, loose fiscal policy, lower privatization revenues, and the [forthcoming German] compensation pay-outs. The cut will come in April and will be 1.5%-2.0%", said Przemyslaw Magda from Amerbank. The Warsaw Stock Exchange did not show any signs of anxiety prior to the RPP meeting, with activity rather flat, seeming to react more to foreign markets. (Gazeta Wyborcza, p.22) J.K.