The National Bank of Romania (BNR) didn’t make an obsession out of inflation, but it’s interested in it because of the interest rates, Governor of the BNR Mugur Isarescu stated at the conference called “Romania 2030: How do we recover the gaps from Western Europe?” “We are interested in inflation and credibility because of the interest rates. For, otherwise, if we don’t go down with inflation, whether we want it or not, the interest rates will increase and this will discourage economic growth. Here is an extremely fine game the National Bank has to play. Keep credibility. The interest rates are below the inflation rate. We are saying that inflation is not actually caused by excess demand, by what we control, by other factors. Often, the audience doesn’t believe us. Because, for you, inflation is inflation, prices go up. There is no use in me saying ‘you know it’s caused by others.’ But we are looking not to get the interest too high, including because the exchange rate would go up and then Mr Mihai Ionescu [the Secretary General of the Romanian National Exporters and Importers Association – ANEIR], in attendance here, I don’t think he would be very happy, because exports are growing still, but they don’t increase just as fast as imports,” Mugur Isarescu stated. Also, the BNR Governor mentioned that inflation will reach 3.5 percent at the end of the year and then it will move toward 3 percent. “We do not have an obsession with inflation at all, but it will come down. I even read today … It will be below 3.5 percent probably by the end of the year. Where does our concern comes from? We should probably not fight so much. Why? Because two-thirds of the price increase, 5 percent was due to some ‘exogenous measures.’ It did not sound good. As if we put the blame on others. That was that. It has been an avalanche since last year. The price for energy, gas and tobacco has risen, all have been postponed due to the electoral cycle. They were made last year and it reached 5 percent. This ‘shock’ on the supply side will pass and inflation slightly moves to 3 percent. It will not go down too much and we cannot drop it too much because there is a Balassa-Samuelson effect. In a country that is in this catching up and running to catch the others, inflation it’s called in English ‘the inflation is built in.’ So it’s in this effort. As a long-run runner who has to sweat more than that … and he sweats in the form of inflation. It’s not the happiest comparison,” Mugur Isarescu stated.
The post BNR’s Isarescu : We do not have an obsession with inflation at all. We are interested in inflation and credibility because of the interest rates appeared first on Nine O' Clock.
German company Henkel, with over 500 employees in Romania, has opened a new headquarters in Bucharest, marking a fresh chapter in its three-decade presence in the local market. The space blends Henkel’s “Smart Work” concept with Romanian cultural design elements inspired by Constantin Brâncuși and traditional motifs, while a dedicated quiet zone pays tribute to […]
A couple of years ago, Romania’s Defense Ministry concluded a USD 400 million deal with Israeli company Elbit for the development of seven Watchkeeper X systems, which will be used to detect Russian operations near the border areas. The drones will be delivered in a few months, according to the manufacturer, as reported by Digi24. […]
Ruling on the draft law on the disbursement of privately-managed pensions, namely 2nd and 3rd Pillars, inked by the Financial Supervisory Authority (ASF), promoted by the Romanian government and approved with amendments by the Parliament, the Constitutional Court (CCR) concluded that the capping the single payment granted before the start of the monthly payments to […]
The revised bill that bans the cumulation of the public pension of a special (non-contributive) nature with a wage paid in the budgetary sector, currently available for public debate, will be amended so as to restrict the exceptions provisioned in the original form, labor minister Florin Manole said, according to
The Romanian business community reiterated its firm call to decision-makers to eliminate the minimum turnover tax (IMCA), in view of the discussions on the construction of the state budget for 2026, according to a statement signed by more than 100 employers' federations, business associations, and chambers of commerce in Romania. The Romanian government will address […]
Romanian president Nicusor Dan reiterated in a speech at the 2025 Digital Governance Summit organised by Edge Institute at Cotroceni Palace and published on the Presidency's webpage, thus making it somewhat official, an invitation addressed to the "private community" to draft regulations and sectoral policies that the state is unfortunately unable to design, such as […]
