RPP leaves interest unchanged, Balcerowicz says growth will be above 3%

The Monetary Policy Council (RPP) during its meeting yesterday decided to leave main interest rates unchanged at 5.25%. This signals that the attempt by the Democratic Left Alliance (SLD) and Polish Peasants Party (PSL) to appoint Jan Czekaj as the new RPP member to support their idea of cutting interest rates, have so far not met with success. The RPP justified its decision on the grounds that that loose fiscal policy in connection with an influx of EU funds will lead to a rise in demand. This in turn will cause a sudden increase in inflation. "The current level of interest rates is not an obstacle to economic growth," said RPP chairman, Leszek Balcerowicz, who added that GDP growth this year will exceed 3%. Also yesterday, the Central Statistical Office (GUS) published data on food prices in the first half of August, which fell below analysts. The next meeting of the RPP will be held on September 29-30. (Parkiet, p. 8; Puls Biznesu, p. 6; Rzeczpospolita, p. B5) A.K.