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Polish minister warns against high rates
Polish Economy Minister Jerzy Hausner said Wednesday increased interest rates risked pushing up the zloty, the Polish currency, and hurting competitiveness.
Hausner said high rates, which usually cause currency appreciation, would hit both exports and inward investment by foreign investors.
His remarks were reported by Poland's PAP news agency and they signal the prospect of divisions inside the government. Finance Minister Miroslaw Gronicki, in contrast to Hausner's comments, has said he supports increased interest rates to curb inflationary pressures.
The Polish central bank has raised interest rates by 125 basis points in recent months bringing the key official rate to 6.5 percent.
The bank's moves came in response to a pick up in inflation which hit a three-year high of 4.6 percent in July.
(Source: http://washingtontimes.com/upi-breaking/20040922-114806-1278r.htm) |
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