Energy price were sent to food, while services felt less of a shock, being less intensely energetic, while the National Bank of Romania ( BNR) is trying to counteract these “second round effects”, Cristian Popa, a member in the BNR Administration Board wrote on his Facebook page. “Inflation pressures remain ample, this time behind the inflation evolution there were food products, energy prices were practically sent to food, while services felt the shock less, being less energetically intensive. The transmission rate, the influence of energy price increase in the rising price of food, is very rapid and strong. Maybe only the exchange rate can have a higher transmission rate than energy prices. BNR is trying to counteract these second round effects, generated by energy prices, through a certain stability of the exchange rate. Higher interest rates help us for exchange rate stability. If we are at less than half the inflation rate with interest rates and with monetary policy interest rates lower than in Hungary, Poland and Czech Republic. Second round effects will continue and BNR, knowing that monetary policy cannot stop the energy crisis or military conflict, has increased the interest rate by 0.5%,” Popa wrote. He mentioned that measures were taken by the book. BNR began in sprung last year by stopping the purchase of state bonds, the firm control of cash flow and rising interest rates. “Measures will continue, they have to. Moreover, economic growth is losing down, positive gap is closing, reducing inflation pressures from demand. We have a major problem, which we know is difficult to solve I the middle of a major crisis (pandemic and war at the border): we have two major deficits. These are the fundamental problems. We entered pandemic with the biggest deficits, and we are getting out of it in the same way,” Popa showed. The annual inflation rate went up to 10.15% in March 2022, from 8.53% in February, in conditions in which non-food products were more expensive by 10.86%, foodstuff by 11.20% and services by 6.53%, according to data supplied by the National Statistics Institute on Tuesday.
Romania’s Superior Council of Magistracy (CSM) issued its first response to the Recorder documentary alleging systemic manipulation within the justice system, calling the investigation an amplification of a “campaign to destabilize judicial authority.” The council said on Thursday, December 11, that it will evaluate what measures need to be taken following the report. In a […]
MedLife, Romania’s largest private medical services network, announced on Wednesday, December 10, that it reached a market capitalization of EUR 1 billion on the Bucharest Stock Exchange (BVB). The milestone secures its position as “the most valuable healthcare company” in the country. The achievement came nine years after MedLife’s listing on BVB in December 2016, […]
The Buzău Land UNESCO Global Geopark in Romania has become a “living laboratory” this week as a team of American researchers arrived to study microorganisms capable of surviving in extreme environments. The scientists, part of the interdisciplinary research organisation The Two Frontiers Project, are examining methane seeps, sulfur and petroleum springs, saline sources, and other […]
A moose has been unexpectedly spotted in the Hunedoara county area, specialists from the conservation group Rewilding Romania announced on Wednesday, December 10, sharing footage of the animal on social media. The sighting is considered “an important discovery for Romania’s wildlife,” though experts caution that it remains unclear how the animal reached this region. According […]
Trade unionists will continue to require the Presidential Administration to mediate the conflict with the government on issues such as the minimum wage or the collective labour agreement, said Bogdan Hossu, president of the Cartel Alfa trade union confederation, as reported by
Prime minister Ilie Bolojan said on Wednesday, December 10, that Romania’s state budget for 2026 will be adopted only at the end of January, citing the need for Parliament to first approve legislation required to ensure predictability and compliance with the country’s deficit targets. His comments came as the government has been working to align […]
