|
RRI newsletter subcription
(e-mail address):
|
 |
Archives:
|
|
| The Central Bank in Bucharest on the Romanian economy 08/02/2011 |
| (2011-02-08) |
| Last updated: 2011-02-10 12:46 EET |
The National Bank of Romania has increased its inflation estimate for 2011, from 3.4% to 3.6%, but it still expects the rate to be half the value last year, when it was around 8%, the highest in the European Union.
In 2010, the central bank operated several upward adjustments of its inflation target, particularly because of the VAT increase from 19% to 24% and of the rise in foodstuff, fuel, tobacco and service prices. Adding to these were also foreign price increases.
In 2011, governor Mugur Isarescu estimates the VAT rise effects will fade. He argues that there are no domestic causes likely to trigger fresh price rises, because production and stocks are sufficient and the demand continues to drop. The only inflation pressures, Isarescu says, come from the international market.
Central bank governor, Mugur Isarescu: “At an international level, the sovereign debt crisis and the higher inflation in the eurozone may certainly push the national market up as well. The oil price, food prices on international markets and the Euro-dollar exchange rate are the main factors that may enhance the risks of inflation increase.”
Another inflation risk mentioned by the central bank is a slowdown in structural reforms and fiscal consolidation. The national bank governor announced that the inflation decrease process would go on in 2011:
“The disinflation curve will feature two massive reductions. The first will be noticed in the first quarter. Then we expect the inflation rate to remain roughly constant for a few months, given that last year as well inflation was relatively low during the summer months, and then we will most likely have a more substantial decrease in the third quarter, when the annual inflation rate will be within the variation interval and remain within those limits for the rest of the year.”
On the other hand, Isarescu announced that the National Bank would improve the access of commercial banks to market liquidities, by means of refinancing operations. At present, the central bank is a net debtor in the monetary market. He explained that the excess liquidity in the banking market, concentrated in four-five institutions alone, was indicative of the distrust between banks, but expressed his confidence that this will gradually disappear.
According to Isarescu, since the beginning of the year, the central bank has not intervened in the monetary market to correct the exchange rate, which is currently steady; He added that under the new agreement that Romania intends to sign with the IMF, the central bank would only receive money from that financial institution if an attack on the national currency was triggered by a crisis in the region and likely to undermine the country's international credibility.
|
|
| |
WMA |
|
64kbps : |
1
2
3
|
|
|
128kbps : |
1
2
3
|
| |
MP3 |
|
|
64kbps : |
1
2
3
|
|
|
128kbps : |
1
2
3
|
| |
AAC+ |
|
|
48kbps : |
1
2
3
|
|
|
64kbps : |
1
2
3
|
 Historical mascot of
RRI |
| |
© 1999 - 2011 Copyright Radio Romania International |
|
2025-04-03
Print
Listen again