Elected for a new five-year term at
\nthe helm of the National Bank of Romania, a position he has held since 1990,
\nGovernor Mugur Isarescu gave assurances the Central Bank will see that
\nRomania’s inflation rate is kept in check, below the 10% mark. This is more
\nthan a commitment, Isarescu says, arguing that despite the impression created by
\nthe difficult economic context, hard facts show that the inflation rate in June
\ncould drop below 4%. The Central Bank on Thursday decided to maintain the monetary
\npolicy interest rate at 2.5%. Mugur Isarescu says the time has come for
\neconomic growth to stop being consumption-driven.<\/p>\n
<\/p>\n
\n
<\/p>\n
Over the coming period the main challenge is to ensure
\neconomic growth while implementing fiscal consolidation measures. That is
\nmainly because so far growth has been stimulated by boosting consumption. That
\ngap is closing now and the question will arise – how will the economy grow?<\/p>\n
<\/p>\n
\n
<\/p>\n
Economic analyst Cornel Cojocaru
\nsays the latest news from the Central Bank is good:<\/p>\n
<\/p>\n
\n
<\/p>\n
Basically, the monetary policy interest rate has been
\n2.5% for almost a year. The reason behind it, as the Central Bank has shown, is
\nin part a stabilizing trend in the average price hike rate. This is good,
\nbecause we are on the verge of seeing abrupt spikes in the average inflation
\nrate from one year to the next. In that respect, the National Bank estimates a
\ndrop below 4% in June. What is certain, to citizens, investors and
\nentrepreneurs alike, is that the inflation rate will probably average at 3.5% -
\n4% by the end of the year. It’s good news, because this is indicative of a
\nstable economy. <\/p>\n
<\/p>\n
\n
<\/p>\n
The National Bank of Romania will
\npreserve a prudent and responsible policy, its long-term goal being Eurozone
\naccession, Governor Isarescu added. The Romanian official says Romania must
\nprepare well in advance to join the Eurozone, considering the significant
\ndevelopment gaps between our country and Eurozone states. <\/p>\n
\n
<\/p>\n
(Translated by V. Palcu)<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
The inflation rate could drop below 4% in Romania, the National Bank reports<\/p>\n","protected":false},"author":108,"featured_media":67300,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[29041,29631,36714,30253],"coauthors":[],"class_list":["post-82456","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-eurozone-accession","tag-inflation-rate","tag-monetary-policy-interest-rate","tag-mugur-isarescu"],"acf":[],"yoast_head":"\n