The Romanian Central Bank (BNR) tries to reduce inflation expectations by increasing the monetary policy interest rates and slow down price increases for other components, in conditions in which over 70% of the inflation component is determined by energy prices, said Dan Suciu, the BNR spokesman at Radio Romania News, according to Rador. He said that an increase of generalized interest rate takes place at world level and he does not think there are many central banks which afford to increase the interest rate. Asked whether previous projections were too optimistic he answered that the deep impact and the spectacular increase rate of energy prices had not been anticipated. He said that in that situation there are two types of solutions, a combination of fiscal policies and of monetary policies. He pointed out that it is a unique situation, since inflation causes in Romania, at least in the early 1990s, were domestic, concerning production capacities, and answering demand, therefore an inflation determined by high market demand. “Now inflation comes from offer, because we have prices that explode beyond the existing demand, that is we do not have an additional demand for those products, but we have offers that come with additional prices for reasons beyond our domestic control. We have references of these energy prices which are international and in the context in which we had a price liberalization we choose a very high price component for energy in the inflation index. I repeat, over 70% of the inflation index comes from energy,”Dan Suciu said. Asked how the National Bank can step in to keep the situation under control, he showed that the BNR intervention is indirect. “Obviously we cannot change energy prices, but we can limit the pressure that leads to the other prices by limiting credit, by making money more expensive. We do it step by step. For the time being, we make money more expensive, step by step. For the time being, we had three steps of making money more expensive, so that the quantity of money that can wonder in an economy and can determine other prices to go up and be better appointed for,” the BNR representative said.
Participation in cultural education activities continues to be limited, with the main barriers being difficult access, insufficient knowledge, and cost, the recently released Cultural Consumption Barometer 2024 shows. The report showed that many Romanians still associate culture with entertainment rather than with personal development or furthering their knowledge. The need for relaxation dominates in cultural […]
Roughly 84% of Romanians say that the pace of the state’s digitalization is slow or very slow, according to an Edge Institute & AtlasIntel study presented at the Digital Governance Summit 2025, which took place on Tuesday, November 25, at the presidential palace in Bucharest. The survey aims to capture the way citizens relate to […]
Romania’s Superior Council of Magistracy (CSM) issued a negative opinion on the new bill regarding magistrates’ pensions. The move is only the latest development concerning a heated issue that led to tensions between the executive and the judiciary branch. CSM’s opinion is consultative, and the government led by Ilie Bolojan can still take responsibility for […]
Romania took the presidency of the Central European Initiative (or CEI) on Wednesday, November 26, according to a press release from the Ministry of Foreign Affairs (MAE). The organization is a regional intergovernmental forum established in 1989, following the fall of the Berlin Wall. It gathers 17 Member States in Central, Eastern, and South-Eastern Europe […]
Trade between Romania and Poland continues to grow, with annual bilateral exchanges in goods now valued at more than EUR 12 billion, according to figures presented by the Polish-Romanian Bilateral Chamber of Commerce and Industry (PRBCC). The data was released during a reception in Bucharest marking Poland’s Independence Day and Romania’s National Day. Polish investments […]
As Romania moves closer to implementing the EU Pay Transparency Directive, local employers are preparing for one of the most consequential shifts in workplace regulation in over a decade. The directive, set for transposition by June 2026, introduces strict new rules on salary disclosure, pay reporting, and equal-pay verification, aiming to close persistent gender gaps […]
