”The decision of the National Bank of Romania is justified by the downward trend seen by inflation. The inflation rate is expected to drop in the coming period to reach 3.5% towards the end of the year, while confidence in the Romanian economy will increase. This trend is to be seen in the appreciation of the exchange rate and the upgrading of the country’s rating by Fitch. Regarding the impact on the market, we will see a consolidation of the decrease in interest rates and lower interest rates for loans as well as deposits.”

Experts believe however that commercial banks will only reduce real interest rates on loans if uncertainty on the labour market is eliminated. Analyst Radu Craciun:

“Nothing spectacular is going to happen in the short run, with any changes in banks’ loan policy being more likely to be seen in the medium term. These decisions by the National Bank are necessary for interest rates on loans to become lower, but we also need an increasing appetite for loans within the baking system itself. There little appetite at the moment due to uncertainty on the labour market, the increase in the unemployment rate, as well as economic uncertainty, given that growing unemployment will diminish Romanians’ appetite for consumption.”

Prime Minister Emil Boc has announced that the government will no longer tolerate delays in the payment of financial obligations to the state and declared total war on tax evasion:

“I am calling for the law to be respected when it comes to tax evasion and for all the finance ministry bodies with responsibility in the field to become fully involved in the war on tax evasion. Before setting new taxes and fees in Romania, I think we have the obligation to properly collect the money due to us from everybody. The law must be enforced and all obligations must be paid according to the law.”