RPP decides against increasing interest rates to the approval of economists

Monetary Policy Council (RPP) did not increase interest rates yesterday. According to experts, a decision to increase rates will not occur this year. Though disappointed with the level of price changes in March, RPP plans for inflation to be at 6.8% by the end of December. The decision of RPP satisfied economists who claim the present interest rate level is the best for the economy. "The Council proved it consists of economists and not only people tied to the planned level of inflation," said Monika Kubik-Kwiatkowska of Standard and Poor's. Due to the unchanged level of interest rates, the inflation prognosis may be slightly exceeded. At this moment the biggest problem for RPP is the large current account deficit, which has reached 8% of GDP. (Rzeczpospolita, page 1, B5; Prawo i Gospodarka, pages 1,10) M.M.