No interest cut rates expected until new government shows first move

Analysts and economists expect no decision on interest rate cuts during the Monetary Policy Council (RPP) meeting planned for today; members of the RPP are more likely to wait until October, to see the new government's first move... RPP will wait ...to see their Finance Minister's economic policy" said Iwona Pugacewicz-Kowalska, an analyst at Pekao bank. Andrzej Sadowski, deputy chairman of the Adam Smith center said, "There are no presumptions that RPP should cut interest rates this month". The RPP chairman and NBP President Leszek Balcerowicz, who counts on cooperation with the new government, said in light of budget recovery, efforts should be focused on "rationalizing spending". (Prawo i Gospodarka, p. 11), M.T.