RPP decision to keep interest rates steady draws fire from government

The Monetary Policy Council (RPP) as anticipated opted to keep interest rates steady, deciding against a cut due to concerns over state spending and deteriorating savings rates. "This decision was not unexpected. We signaled it before. We are now focusing on the profitability of savings," commented RPP chairman and National Bank of Poland governor Leszek Balcerowicz. However, both Prime Minister Leszek Miller and Finance Minister Marek Belka expressed disappointment with the decision. "In a situation where economic growth is stalling, unemployment is rising and Polish exporters are facing growing problems because of the zloty exchange rate, the RPP decision is disappointing," Miller said. Belka repeated his call for a concerted effort to revive the economy between the Cabinet and central bankers. Gazeta Wyborcza speculates that as early as this week the Democratic Left Alliance (SLD) and its coalition partners the Polish Peasants Party (PSL) and Labor Union (UP) could put forward proposals for limiting the independence of the RPP. (Gazeta Wyborcza, p. 18; Puls Biznesu, p. 22; Zycie, pp. 1, 3; Reuters) P.J