RPP to recalculate inflation targets but not expected to raise interest rates

The Monetary Policy Council (RPP), which meets today, is not expected to raise interest rates. However, it is going to discuss modifications to inflation targets for next year. According to Miroslaw Gronicki from the Center for Socio-Economic Analysis (CASE), the RPP may be faced with the dilemma of whether to keep current inflation targets at the level of 5.4-6.8%, or take more severe measures to drive inflation to 4% by 2003. The macroeconomic indicators, especially the growing current accounts deficit, support his view. The latest figures will be published by the National Bank of Poland (NBP) on May 4, although RPP will receive the preliminary data for today's meeting. Despite the growing deficit, NBP president Hanna Gronkiewicz-Waltz remains upbeat about the future prospects of the Polish economy. (Prawo i Gospodarka, pages 1, 10) P.S.