Ooni Koda
  1. Home
  2. /
  3. Newsfeed
  4. /
  5. BNR official: Inflation turned into disinflation; price grow...

BNR official: Inflation turned into disinflation; price grow at slow pace, in Romania too

November 29, 2023

Inflation, according to September 2023 data, has turned into disinflation, prices grow at a slower pace, in Romania too, considers Adrian Vasilescu, counsellor of the BNR governor (National Bank of Romania).   “The world has reached a favorable moment and we can analyse the evolution of interest rates on the background of inflation reassessment. That means inflation has turned into disinflation, according to September 2023 data publicly released. This is also happening in the USA and EU, and in Romania too,” Vasilescu mentioned, on Thursday, in a message conveyed to the organizers of the online conference “Evolution of interest rates in context of inflation reassessment”.   According to the BNR official, energy transition turned into energy crisis and prices of energy products have grown sky high.   “Prices of energy products and services have gone up, when strategists everywhere have become convinced that oil and natural gas are not enough for everybody, and the fire that started from the price of energy spread to the whole price system. In March 2022, the Federal Reserve, followed by the Central European Bank in July, triggered the battle for the new transition from the big relaxation of the monetary policy to the big tightening. A complex and risky process of making credits more expensive by increasing main interest rates started. Why risky? Because the fire lit from energy products and prices cannot be turned down with monetary policy decisions”, said Adrian Vasilescu.   At the same time he explained the way in which the National Bank had chosen to intervene through monetary policy decisions.   “Why did we intervene in the spring and summer of 2022, even though the fire became stronger when the geopolitical crisis was added to the energy crisis? Why didn't BNR follow the path of the two big banks and adopted a harsher monetary policy as of October 2021? Because our central bank had a long experience in curbing inflation since 1990 to the years 2017-2019, in five big inflation cycles. Over 2017-2019 when the banl faced high inflation triggered by the price of energy, it learned two important lessons. The first one: the monetary policy cannot fight high energy prices but can fight basic inflation which all world banks calculate, by substracting inflation produced by volatile prices, the energy ones included. In the USA and the euro zone, Fed and CEB did not have such experiences. For 40 years, since the oil crisis of the 1970s, the two big banks have not been facing any inflation. On the contrary, they had deflation cycles which they fought by relaxing the monetary policy. Practically, they dropped monetary policy interest rates to zero or close to zero. The global inflation cycle started in 2021 and caught them unused to such a fight, as in wars, when military strategists are often trained in heavy fighting. Inflation turned into disinflation and continues to drop to the optimum 2% share. In addition, the present price disorder determined some central bank strategists to move the best share to 2%”, the BNR counsellor added.  

Read in full - click here
Iron Maiden to bring ‘Run For Your Lives’ tour to Bucharest in 2026

British heavy metal band Iron Maiden will perform at Bucharest’s National Arena on May 28, 2026, as part of their “Run For Your Lives” anniversary world tour, promoter Emagic announced on Thursday, September 18. The concert will feature a career-spanning setlist highlighting defining moments from the group’s five-decade history, accompanied by what organizers described as […]

Three out of four Romanians believe Ukraine war greatly impacts Romania, survey shows

Three-quarters of Romanians believe that the war in Ukraine affects Romania to a very great and fairly great extent, according to the third edition of the Informat.ro barometer by INSCOP Research, carried out between September 1 and 9. The monthly survey, which aims to bring to public attention topics of interest, shows that “opinions are […]

Romanian investor reportedly buys Bucharest’s emblematic Scala building

Daniela Schoppmeyer, the majority shareholder and general manager of Faberrom, a company that took over in the 1990s most of the spaces of the former APACA clothing factory in western Bucharest, is the new owner of half of the emblematic Scala residential block, on Magheru Boulevard, Profit.ro reported. Schoppmeyer...

Bucharest Parking Company reports strong results, adds over 12,400 new parking spaces in H1

The Bucharest Municipal Parking Company (CMPB) inaugurated 189 new parking facilities with more than 12,400 spaces in the first half of 2025, while revenues from parking fees rose 20% year-on-year to RON 50.4 million (roughly EUR 10 million), the company said on Thursday, September 18.  CMPB reported a net profit of RON 28.3 million for January–June […]

Romanian project creates seagrass meadows, artificial reefs in the Black Sea

Romania has inaugurated underwater seagrass meadows and artificial reefs in the Black Sea as part of a major restoration project aimed at curbing erosion and reviving marine biodiversity, the National Administration “Apele Române” said. More than 20 hectares of seabed have already been planted with Zostera noltii seagrass and transplanted with Cystoseira barbata seaweed, creating […]

Former California pastor accused of sexual abuse, child trafficking at Bucharest shelter

A former pastor from California has been accused of sexual abuse and child trafficking at a shelter he ran in Bucharest, according to lawsuits filed by two Romanian men in the California District Court, AP reported. The complaints, filed by 33-year-old Marian Barbu and 40-year-old Mihai-Constantin Petcu, reportedly say that former pastor and missionary of […]