SLD aims to strip Monetary Policy Council's right to set inflation targets

The Democratic Left Alliance (SLD) wants to amend the law on the National Bank of Poland (NBP), stripping the Monetary Policy Council (RPP) of its power to set the inflation target. Under the proposed model, similar to that used in Great Britain, the government would set the target and it would then be NBP's and RPP's job to achieve it. The proposed amendment is a response to widespread criticism that NBP's tough anti-inflationary policy is stifling economic growth and leads to huge unemployment. Marek Borowski, one of SLD's top economic experts, said the new system would help solve the problem of the government blaming NBP for lower growth, as the Cabinet would also be responsible for monetary policy. However, former NBP president Hanna Gronkiewicz-Waltz believes the proposed amendment is against Article 227 of the Constitution, which clearly states that NBP has the sole right to set and execute monetary policy in Poland. Although it is unlikely the current Sejm will pass the proposed changes, many polls show SLD taking a majority of parliamentary seats in autumn's general elections. (Gazeta Wyborcza, April 7-8, p.27) T.J.