He said - in an e-mailed response to questions from Bloomberg - that the Polish currency's "stronger exchange rate could lower future inflation." According to him, the currency's strength is an "important factor" in decision-making by the Monetary Policy Council (RPP). 

The agency said that "Skrzypek's comments were written yesterday at a meeting in Basel, Switzerland, after the zloty gained 2.7% against the euro this month. Eight days of gains, the longest winning streak in four months, began on Feb 26 when Skrzypek said in a radio interview the bank 'will seriously take into consideration the possibility of increasing rates.'" 

The RPP kept interest on hold in February and is expected to leave them flat at least by late 2010, though it might change its policy bias to tightening from neutral within the next few months.

tom