RPP keeps interest rates unchanged amid uncertainty on world markets

Despite the low level of inflation, the Monetary Policy Council (RPP) has, as expected, kept interest rates unchanged. A major reason behind the decision, according to Leszek Balcerowicz, governor of the National Bank of Poland (NBP), is the current uncertainty on world markets following the terrorist attacks in the US. "This may cause an economic downturn on world markets, and thus in Poland," Balcerowicz commented. In reaching its decision, the RPP was anticipating a rise in oil prices, which will affect the inflation rate in Poland. At the same time, there has been an increase in uncertainty in the public finance sector. As the members of the RPP have emphasized, their meeting took place immediately after Sunday parliamentary elections, and future economic policy is still undecided. The NBP has kept its main interest rate, the minimum 28-day intervention rate, at 14.5%, the discount rate at 17% and the emergency lending lombard rate at 18.5%. The RPP has not yet issued any statement on the budget draft, which was presented to them on Tuesday by Finance Minister Halina Wasilewska-Trenkner, although individual members have passed unfavorable comments. (Gazeta Wyborcza, p. 16; Reuters) M.T.K.