RPP to slash 100 basis points off rates unless złoty begins to weaken

The first decrease is expected in three months, while the following one in July. According to some economists, it is however also possible that there will be no decrease in the interest rates in 2005. "This is our basic scenario," said Łukasz Tarnawa, chief analyst with PKO BP. He went on to say that this might be due to the fact that between April and July when the RPP could decide to lower rates the złoty might weaken. This currency depreciation would bring about a similar result to lowering interest rates. (Parkiet, p. 1) M.M.