RPP raise interest rates by 25 basis points

The decision did not come as a surprize as this was pretty much what economists had been expecting. According to the RPP, inflation will remain above the path sketched in the October projection for the next few months. The likelihood of the CPI exceeding 2.5% in the mid-term is also higher than the likelihood of prices increasing at a smaller pace. "It seems that even RPP chairman Skrzypek was convinced that rates should be increased. However, the communique of the Council did not mention the possibility of increasing the rates in December," said Marcin Mrowiec, economist of Bank BPH. In his opinion the RPP will not raise rates before Christmas. Most economist now expect a rate rise in January. (Puls Biznesu, pp. 1, 11; Gazeta Wyborcza, p. 21; Rzeczpospolita, p. B1) M.M.