RPP: interest rates on hold, but revaluation reserves put under tighter control

The basic reference rate remains 5.25%, the rediscount rate at 5.75%, lombard at 6.75%, while the deposit rate stays at 3.75%. "Together with the New Year, changing the composition of the RPP and after accepting the Haunser plan, one should expect a decision to loosen monetary policy," believes BZ WBK's chief economist Maciej Reluga. He added that if rate cuts were made, then they should not exceed 25 basis points. Other experts, such as Krzysztof Rybiński, an analyst with BPH PBK, expect rates will go up in 2004. However, the RPP made a decision about changing the accounting rules of the Central Bank, which should make it more difficult to use money from the revaluation fund. (Rzeczpospolita, p. B7) M.M.