OECD director echoes Kołodko's opinion that interest rates are too high

The head of the OECD on Monday backed Poland's 2006 target date for qualifying to adopt the euro currency. "My term expires in 2006, by which time I hope Poland will fulfill its projection of meeting the criteria," Donald Johnston, secretary general of the Organization for Economic Co-operation and Development (OECD), said in Warsaw. Johnston was speaking at a joint news conference with Finance Minister Grzegorz Kołodko, who has talking about meeting euro borrowing targets in 2006 to enable the adoption of the common currency as early as 2007. Johnston also took a dig at Polish central bankers, who despite easing monetary policy over the past two years have kept interest rates high in comparison to inflation, which is now close to zero. "Given that inflation is very low and unemployment is very high, the question is whether monetary policy is too restrictive," Johnston told reporters. (Reuters) A.C.