New NBP governor to have decisive vote on RPP

"He has experience that earns trust. His nomination closes the door from the bad candidates suggested so far," said Mateusz Szczurek, chief economist with ING. According to economists, the new candidate should be perceived as a "dove", which means that he might be soft about increasing interest rates and not as Leszek Balcerowicz who is perceived as "hawk". "In the Monetary Policy Council (RPP) this will be only one voice among many," said Andrzej Bratkowski, chief economist with Pekao SA. The term of office of other members of the RPP who cannot be replaced by the chairman ends in 2010. Bank BGZ analysts indicate that currently there are four doves and four hawks, including Balcerowicz on the Council and two neutral persons. "Everything now depends on Sulmicki. If this will result in delaying the pace of increasing rates, inflationary expectations will increase, as the rate of inflation might exceed 2.5% in H1 2007," said Dariusz Winek, chief economist with BGZ. Jan Sulmicki is positive about Poland's accession to the EMU. (Rzeczpospolita, pp. A1, B1; Parkiet, p. 1) M.M.