RPP expected to lower interest rates

Most analysts believe that the Monetary Policy Council (RPP) will lower interest rates tomorrow and they all agree that if it does so, it will be the last cut this year. There are several arguments in favor of reducing the National Bank of Poland's interest rates, such as a considerable drop in industrial output in March and the inflation rate, likely to be under 3% in April. Another key factor is the low inflation expectations of consumers, partly the result of stable salaries, which in turn are connected to the high unemployment rate. An important argument against lowering interest rates is the falling level of bank deposits. (Rzeczpospolita, p. B1; Gazeta Wyborcza, p. 18) T.J.