RPP to cut rates in August

By : Reuters

   Economy Minister Janusz Steinhoff said on Friday he expected the central bank's Monetary Policy Council (RPP) to lower its interest rates in August, in line with falling inflation.

   "I expect rates to be lowered at the RPP's next meeting," Steinhoff told a news conference, reiterating earlier calls for rate cuts from government officials who say high borrowing costs are stifling economic growth.

   The RPP, which holds its next meeting on Aug. 21-22, has lowered its main rate three times this year to 15.5%. Year-on-year inflation fell to 6.2% in June from 8.5% in December 2000.