Presidential advisor says RPP to lower interest rates

Economic advisor to President Aleksander Kwaśniewski, Witold Orłowski estimates that the new Monetary Policy Council (RPP) is very likely to aggressively lower interest rates at the beginning of its operation. As a result, a considerable reduction of 150 base points may act to the detriment of the Council's market credibility. Currently, some of the RPP members end their tenures in January and the remaining members in February 2004. "I think that by the end of its tenure, RPP will have lowered the base point by 25-50 points. This may result in the new RPP's radical change in its current tactics of interest rates reduction" said Orłowski. (www.onet.pl) A.Z