Ro­ma­nian rate.

Kathimerini English - - Business & Finance -

Ro­ma­nia’s cen­tral bank left its bench­mark in­ter­est rate un­changed for the 12th con­sec­u­tive month yes­ter­day as in­fla­tion will re­main above its tar­get range un­til next year. The Banca Na­tion­ala a Ro­maniei kept the main in­ter­est rate at 6.25 per­cent to­day, match­ing the ex­pec­ta­tions of all 11 econ­o­mists sur­veyed by Bloomberg. Price growth will “tem­po­rar­ily” ac­cel­er­ate in the sec­ond quar­ter be­fore slow­ing to the 2-4 per­cent tar­get band next year, the Bucharest-based bank said in an e-mailed state­ment. “The mon­e­tary pol­icy stance is aimed at pre­serv­ing the prospects for re­sum­ing dis­in­fla­tion, de­spite the re­cent in­fla­tion­ary shocks,” the bank said in the state­ment. “The out­look of con­tin­ued and grow­ing flows of volatile cap­i­tal trig­gers con­straints” on mon­e­tary pol­icy in­stru­ments. The bank ap­proved its quar­terly in­fla­tion re­port yes­ter­day and will present it at a press con­fer­ence to­mor­row. “The mes­sage of the cen­tral bank is that they will keep the in­ter­est rate un­changed for the year as they con­tinue to search room for pol­icy eas­ing,” Ni­co­laie-Alexan­dru Chidesciuc, chief econ­o­mist at ING Bank in Bucharest, said by phone. “I think it’s the wrong mes­sage and the bank is un­der­es­ti­mat­ing the im­pact of the price in­creases. Keep­ing mon­e­tary pol­icy re­laxed now fu­els higher than an­tic­i­pated in­fla­tion in 2012 and 2013.” (Bloomberg)

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