\nRomania’s
\nannual inflation rate went up to 16.8% in November 2022 from 15.32%
\nin October. This is more than the figure of 16.3% forecast for the
\nend of the year by the governor of the National Bank of Romania,
\nMugur
\nIsarescu. It’s also the highest level in the last two decades: in
\n2002, the annual inflation rate was 22.5%, but stayed in
\nsingle-digit territory
\nfrom 2005 until 2021. In
\na move expected by everyone, the managing board of the National Bank
\nof Romania has again raised the monetary policy interest rate by
\n0.25% to reach 7% per year. The central bank’s specialists believe
\nthe annual inflation rate will probably see a slight decrease in the
\nfirst quarter of the year before falling more significantly, possibly
\neven below 10%, from the third quarter of the year. <\/p>\n
<\/p>\n
The new increase
\nin the key interest rate will most probably lead to further increases
\nin commercial banks’ interest rates, especially in the case of
\nloans. Economic analyst Dragos Cabat told Radio Romania that it was
\nimportant for the trend to raise the key interest rate to continue,
\nin order to keep inflation in check and cause it to fall, even if
\nthis means higher repayments for loans with variable interest rates
\nin the national currency. He says around 600,000 Romanians are
\naffected by the increase in the interest rate, mainly persons with
\naverage and above-average incomes, emphasising that the biggest
\nproblem is faced by people with low incomes struggling to afford
\ndecent living and that as far as they are concerned, it is very
\nimportant to put an end to the steep rise in consumer prices. <\/p>\n
<\/p>\n
The
\nincrease in the monetary policy interest rate will lead to a halt in
\nprivate sector investments and to a wave of bankruptcies caused by
\nrecession, warned MP and former economy minister Claudiu
\nN\u0103sui from the
\nSave Romania Union, in opposition. He criticises the government
\nformed by the Social Democrats, the Liberals and the party of ethnic
\nHungarians in Romania for accumulating massive debts amid
\nrising spending for local development and the creation of new state
\nagencies. <\/p>\n
<\/p>\n
FACIAS, the Foundation for the Defence of the Citizens
\nagainst of the Abuse of the State, a non-governmental organisation
\nactive in the public space, also believes it is outrageous that the
\nRomanian state, through its National Bank, has chosen to fight
\ngolloping inflation by adding to the burdens faced by people with
\nbank loans. The central bank’s raising interest rates without any
\nother compensation measures for the population has led to an up to
\n60% increase in the amount of monthly repayments, the organisation
\nalso says, adding that this financial policy, which only seeks to
\nhelp banks, will soon lead to real tragedy among the country’s
\nactive population. (CM)<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"
National Bank again raises reference interest rate, resulting in higher monthly repayments of loans.<\/p>\n","protected":false},"author":105,"featured_media":79589,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[29488],"coauthors":[],"class_list":["post-94241","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-inflation"],"acf":[],"yoast_head":"\n