President Kwasniewski voices support for new Finance Minister Belka

President Aleksander Kwasniewski has said he expects the central bank to cut interest rates and cooperate with the new government to stabilize public finances and revive flagging growth. He also said that inflation could fall to 4% this year, from 8.5% in 2001 and 4.3% in September. "Lower rates are key and they will take place. Rate levels should be a reaction to very low inflation, lower than anyone anticipated," Kwasniewski told Reuters in an interview. "Secondly, if a realistic repair plan for public finances is prepared, as I believe it will be, both primary conditions for lowering interest rates will be fulfilled," he added. Kwasniewski also threw his weight behind Poland's new Finance Minister Marek Belka, his former economic adviser, saying, "Belka is one of the few people in Poland with proper economic know-how. He is the best person for the job on this side of the political fence." The new Cabinet has pledged to rein in spending next year and boost taxes to avoid destabilizing the country's finances. (Reuters)