RRI Live!

Listen to Radio Romania International Live

Report of the National Bank of Romania on inflation

The governor of the National Bank of Romania Mugur Isărescu has presented a report on inflation.

Report of the National Bank of Romania on inflation
Report of the National Bank of Romania on inflation

, 10.08.2022, 14:00

If until about a year ago the reports of the National Bank of Romania – BNR were eagerly awaited especially by financial, banking or economic experts, or by journalists specializing in these fields, at present ordinary people are also trying to decode the ultra-specialized language of the periodic releases. They are among the big losers of a situation with multiple causes, a situation that, above all, has direct consequences on their daily lives: the huge increase in inflation. What does the latest BNR report, presented on Tuesday by Governor Mugur Isărescu, say? What Romanians actually feel daily in their own pockets: that the inflation rate has intensified its growth rate from April to June and exceeded 15 % against the background of the shocks caused by the skyrocketing energy and fuel prices or by the increase in the price of food products, in especially of the processed ones.



Also according to BNR, inflation would have reached 20% if the Government had not intervened and had not capped energy prices – a commodity that is part of all products. As for the future, we are going to have both good and bad news. Inflation is expected to decrease, but not as much as BNR had previously anticipated. More precisely, the national bank increased the inflation forecast for the end of this year to 13.9% and estimates an inflation of 7.5% for the end of next year. In May, BNR had estimated an inflation rate of 12.5% ​​for the end of this year and 6.7% for 2023. In mid-2024, the inflation rate would be 2.3%. Strongly affected by the price increases are also the people with bank loans. In almost half of the cases, their rates are calculated based on the so-called Robor index. If in January, this Robor index was around 3%, currently it exceeds 8%, much more than the monetary policy interest rate decided by BNR, of 5.5%.



However, Governor Mugur Isărescu admits that it is neither pleasant nor easy to pay higher sums, but the central banks message to the population, for more than a year now, is that the period of low interest rates – as was during the pandemic – has passed. In normal periods, a monetary policy interest rate ranges between 3% and 6%, so Romanians should no longer count on a reduction of loan interest rates. Nevertheless Governor Isărescu himself admits that the Robor index has broken a real record, being too high. Under these circumstances, he conveyed a personal message to the banks as well: namely to look more carefully at the decisions of the National Bank. In other words, he hopes and does believe that the Robor index will decrease to the value of the monetary policy rate. (LS)

(Photo: pixabay@Engin_Akyurt)
Today in the News Thursday, 31 October 2024

Romanians’ concerns

Romanians and Austrians are the most satisfied with their lives among the inhabitants of Central and Eastern Europe, but the former are significantly...

Romanians’ concerns
Elections in Moldova (Photo: Radio Chișinău)
Today in the News Thursday, 31 October 2024

Republic of Moldova, crucial final

On November 3, the citizens of the Republic of Moldova have to choose, for the position of head of state, between the pro-European Maia Sandu, the...

Republic of Moldova, crucial final
Foto: Baza 71 Aeriană / MApn
Today in the News Wednesday, 30 October 2024

Drones, a security issue

The Romanian Ministry of National Defense has placed under decisional transparency a bill that improves airspace security measures. The bill, which...

Drones, a security issue
Foto: pixabay.com
Today in the News Wednesday, 30 October 2024

The Fugitive Law is constitutional

The Constitutional Court of Romania (CCR) has rejected the referral of the High Court of Cassation and Justice (ICCJ) in relation to the so-called...

The Fugitive Law is constitutional
Today in the News Tuesday, 29 October 2024

Challenges of an ageing population

Romanians are getting fewer and older.   The population of Romania in mid-2024 was 21,779,000, down 1% compared to June 1, 2023. According to...

Challenges of an ageing population
Today in the News Monday, 28 October 2024

Romania sees rising public debt levels

Government debt rose in July to over 876 billion lei (that’s around 175 billion euros), from 860 billion lei in the previous month, according to...

Romania sees rising public debt levels
Today in the News Monday, 28 October 2024

Presidential debate in the Republic of Moldova

An unusual electoral debate, in form, but predictable in content, had as protagonists, on Sunday, the two remaining candidates in the presidential...

Presidential debate in the Republic of Moldova
Today in the News Friday, 25 October 2024

The presidential campaign begins

  Romania saw the start of the campaign for the first round of the presidential election on Friday. The campaign ends at 7 am on November 23....

The presidential campaign begins

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company