WSE index gains as US cuts interest rates

This represented the strongest intervention in the USA in 23 years. Despite that fears are not over yet, WIG, the main WSE index, gained almost 1.4% on Tuesday, while London's FTSE100 went up by as much as 3%. Economists believe that the decision of Fed was a good move, but not sufficient as its results will not be felt for at least six months. It is still highly likely that a recession will hit the US in H1, but thanks to the recent move and further cuts expected next week, it should not last too long. "The expected slowdown in the United States and other markets should not influence the pace of growth in the Polish economy in 2008, which should stand at 5.5% according to budget forecasts," said Finance Minister Jacek Rostowski. However, the rates decrease in the USA is unlikely to halt an increase of interest rates in Poland with an 0.25 points hike expected next week. (Rzeczpospolita, pp. A1, B1, B2, B3, B4, B5, B15; Parkiet, pp. 1, 2, 4-5, 18, 25, 27;  Puls Biznesu, pp. 1, 4-5, 26-27; Gazeta Wyborcza, pp. 1, 2, 24, 25) M.M.