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.
More than 680 houses in Suceava country and 170 houses in Neamţ county were impacted in the flash floods that hit northeastern Romania at the end of last week. Forty-one houses were completely destroyed, Raed Arafat, the head of the Department for Emergency Situations (DSU), announced on Friday, August 1. Three people were killed in […]
Romanian justice minister Radu Marinescu said on Thursday, July 31, that harsher penalties are being considered for violence against women and domestic violence, including the criminalization of femicide. The minister said that Romania currently has legislation that is fairly adequate, in line with European standards, for combating violence, including domestic violence. He also said that […]
Via Transilvanica, the long-distance trail that crosses the country, will apply to be the first accredited long-distance route in Romania after the government issued the methodological norms regulating the hiking trails of national interest. Tășuleasa Social, the non-profit that developed the trail, called the recently issued norms "a huge step that transforms a bold idea into...
Former prime minister and Social Democratic leader Marcel Ciolacu stated that he does not rule out a candidacy for the presidency of the Buzău County Council, after rumors to that end. PSD Buzău president Romeo Lungu had previously told journalists that discussions are underway for the former prime minister to run for the Buzău County […]
The Balneo-Physiotherapy Clinic in the Călimănești resort town, southern Romania, will undergo rehabilitation with a EUR 10 million financing from the European Union, according to representatives of the Vâlcea County Council. The project implementation period will be 24 months from the completion of the tender for the execution of the works, which include, in addition […]
Bringo, the first personal shopper-based rapid grocery delivery service in Romania, handling over 4,000 daily orders in more than 35 cities, launches a loyalty program that turns shopping into a continuous reward experience. "Beyond functional benefits like discounts, free delivery, or double refunds for SGR packaging collected right at your doorstep, Bringo YOU offers a […]
