RPP under fire from government, but still not expected to cut rates soon

Annual consumer price inflation was 3.5% in February, a tenth of a percentage point up from January, and below market expectations of 3.7%. The Monetary Policy Council (RPP), under pressure from the government, which on Thursday passed a motion accusing it of overly tough policies, is likely to wait till April before it cuts rates again. "While the data is better than expected, nevertheless the National Bank's stance is clear and I do not expect a rate cut his month," said Martin Blum, a strategist at HBV in Vienna. The Central Statistical Office (GUS) reported that consumer prices rose 0.1% in February over January. (Rzeczpospolita, p. B1; Reuters) A.K.