Inflation is an extremely tricky disease that can occur under ‘n’ shapes, on Monday asserted the National Bank of Romania (BNR)’s governor Mugur Isarescu at the “Inflation in past ten years” conference, adding that the inflationary pressure as well as our deficits are largely structural. “If I were to define now, in front of you, whether the inflation is fiscal, monetary, structural, well, as far as we are concerned and we won’t give in to our illusion that we entirely control it, it is an extremely tricky disease that can occur under ‘n’ shapes. And currently, the inflationary pressure and our deficits are structural to a great extent at micro level as well,” Isarescu said. The drop in the crude oil price will be seen in the inflation rate in the next period, the central bank’s governor added. He assessed that within a week it is possible that a 3.5pct inflation be announced. The BNR governor has also referred to the budget drafting for 2019 and said that from his prime minister experience this process is “a fussy arithmetic”. “Our budget construction is a fussy arithmetic. I have known it ever since 2000 when I used to be Prime minister. We had back then 32pct of the GDP [budget revenues, ed. n.] and they used to come to me, systematically, the Finance minister, with demands of budget spending varying between 40pct and 50pct of the GDP. And that was all about negotiation. Where was I supposed to cut so as to have 32pct instead of 40pct in deficit. Is this a macroeconomic balance philosophy? And they used to resort to various kinds of tricks so that each could obtain a large chunk of the spending,” Mugur Isarescu underlined. BNR maintained the inflation prognosis for this year’s end at 3.5pct and raised at 2.9pct, from 2.7pct the prognosis for the next year, on Thursday announced the BNR head, when presenting the Quarterly Report on Inflation.  
The post Central bank’s governor: Inflation, very tricky disease, can occur under ‘n’ shapes appeared first on Nine O' Clock.
The Atlantic Council will honor Romanian president Klaus Iohannis with the Distinguished International Leadership Award for his remarkable career, exemplary leadership of Romania, and his transatlantic and European leadership role. The Atlantic Council’s Distinguished Leadership Awards are often referred to by media as “the Washington Oscars.” Among the honorees are a European head of state, […]
The colorful rapeseed fields in the southern part of Romania have been photographed by NASA from a satellite and featured in an accompanying article titled “Golden Fields in Romania.” The spectacular images were taken last month above the area where the Olt River intersects with the Danube. According to the article, NASA personnel were impressed […]
UiPath, an AI-based company founded by Romanian entrepreneurs and listed on the New York Stock Exchange in 2021, has recruited Raghu Malpani as Chief Technology Officer. Malpani, who was Corporate Vice President at Microsoft for the Microsoft 365 Application and Data Platform will report to the Director of Innovation and the Executive President of UiPath, […]
Production and new orders rise after nine straight months of decline Business confidence picks up, while hiring is back on the agenda Cost inflation eases and selling prices rise only fractionally An improvement in the health of the Romanian manufacturing sector was signalled for the first time in the survey's history, according to the latest […]
Raiffeisen Bank Romania continues its growth strategy in personal financial planning, up 50% in the first quarter of the year in the segment of investment plans, voluntary pensions and life insurance with a savings component. At the same time, it continued to support SMEs and accelerated investments to launch new functionalities in the mobile banking […]
Road crews have begun snow removal on Romania’s spectacular mountain road known as Transfăgărășan. Since there is less snow than in other years, the road could be opened much earlier than the usual date of July 1, according to authorities. Transfăgărășan, Romania’s second-highest road after Transalpina, is being cleared of snow so it can be […]
