The governor of the National Bank of Romania (NBR), Mugur Isarescu, on Tuesday stated that the objective pursued both in the past and in the future by the central bank is to reduce inflation without creating a recession in the country, stressing that a first objective refers to price stability."Price stability is the most valuable public good that a central bank can give to society. It is a well known fact that in conditions of relative price stability and a reasonable growth objective, in our case 2.5%, with a margin of plus or minus 1%, the economy develops better, there are greater chances to have macroeconomic and financial stability and to have long-term, sustainable economic growth. We will aim, as in the past, to ensure price stability without endangering financial stability. For a long time, until the 2000s, it was believed that ensuring financial stability comes almost automatically with ensuring financial stability. The crisis of 2008-2009 proved that this thesis is not correct," claimed Mugur Isarescu at the hearings of the joint parliamentary committees on budget-finance.According to him, currently, "the main imbalance in Romania - financial and economic - is the fiscal-budgetary deficit, which is reflected almost like a mirror in the external deficit - somewhere between 6 and 8%".The governor of the BNR estimated that, in the next period, inflation will stabilize around 2.5%, plus/minus one percent."We believe that in the next period, let's say 12-16 months, inflation will stabilize within the margins established by the BNR policy - 2.5% is our target, plus/minus 1%. Of course, inflation depends on many factors. ( ...) While reducing the inflation to 6%, now 5%, and probably below 5% this autumn, we noticed a greater restraint. Let's say that inflation in Romania was more stubborn. The main factors contributing to this are linked to the increase in income over productivity. The central bank is not against the increase in income, this is the goal of economic growth, but there must be a correlation with the increase in productivity, otherwise the differential (...) leads to either an external deficit, excess demand, or higher inflation, or both, and the danger is a price-salary spiral. (...) I hope that in the next eight months, the influence will go towards the objective of 2.5% plus or minus one percent," the BNR governor said.
President Nicușor Dan has nominated Senate president Ilie Bolojan, a leader of the National Liberal Party (PNL) and former interim president, for the prime minister seat. Dan said Bolojan is “the best person to carry out the needed adjustments in the state administration.” He pointed to Bolojan’s track record with reducing spending, and said he has […]
Balkanik Festival – Home of World Music, set to take place at Uranus Garden between September 5 and September 7, lines up this year artists who "celebrate that form of joy that does not ignore reality, but faces it with beauty, energy, and solidarity," the organizers said. The artists performing in September in Bucharest will […]
The mayor of Timișoara, Dominic Fritz, announced on Friday, June 20, that two new bridges over the Bega River will be built in the city. The bridges will be financed with EU-backed funds worth over RON 130 million. The bridges in question are the Solventul Bridge, which will connect Gării Street to Dâmbovița Boulevard and […]
A Sarmatian necropolis nearly 2,000 years old was discovered after archaeological excavations were carried out at the Mehala II site in the municipality of Timișoara, in western Romania. Researchers discovered 15 inhumation graves, most arranged in rectangular pits with rounded corners, although some no longer retain their original outline, having been disturbed by the passage […]
The George Enescu Philharmonic Orchestra will deliver on June 26 a concert marking Romania Day at the Osaka World Expo. Additionally, the Bucharest-based orchestra will present a series of other concerts and recitals, both within the Romanian Pavilion and outside, at Toyonara Hall in Osaka. The George Enescu Philharmonic Orchestra's concerts will be conducted by […]
Sphera Franchise Group, the largest food service group in Romania, has opened its first Cioccolatitaliani store in the seaside resort of Riccione, in Italy’s Rimini tourist area. This marks the official launch of Sphera Group’s development plan for the premium Italian brand of coffee, gelato, and pastry. Under the plan, it will open four locations […]
