RPP to tighten monetary policy to counter drifting inflation pressure

The Monetary Policy Council (RPP) is considering tightening the monetary policy in order to lower inflation pressure. In its monetary policy objectives which are to be published in several days, the council anticipates the lowering of the zloty's value because of the government's fiscal policy. The tightening will probably be introduced despite the slowing of inflation in the last few months. RPP member Wieslawa Ziolkowska estimates that inflation should decrease to 10.6% in September and to 9% by the end of the year. In addition, the RPP plans to introduce a new deposit interest rate next year for the National Bank of Poland (NBP), which will be used in reverse repurchase operations. (Prawo i Gospodarka, p. 8, Oct. 7-8)