BNR’s Isarescu says Romania will not have galloping inflation, pleasant surprise possible next week

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Mugur Isărescu, appointed on Wednesday for the 7th term as Governor of the National Bank of Romania, said on Thursday that we will not have galloping inflation in Romania, and in June the inflation may fall below 4%.

BNR announced on Thursday that the annual CPI inflation rate remained constant at 4.10 percent (4.11 percent in April), but remained above the target range and slightly above the predicted level, adevarul.ro informs.

“In Romania we will not have galloping inflation, because we are here, it is an emphasis that the country has a central bank. The central bank does its duty in Romania, and we will not have galloping inflation, not at all. We talk about half percent, a maximum of one percent over the top of our target. And now, according to the data we have from the market, you may have a pleasant surprise next week, i.e. the inflation in June will fall below 4%,” Mugur Isarescu said during a press briefing.

On July 10, the National Institute of Statistics (INS) will announce figures on the price developments and the Consumer Price Index in June. The BNR governor also said that “it is not the case to be alarmed about inflation, but there is no need to jubilate.”

“The fact that we do not have a galloping inflation is not a message that we do nothing, that we did not raise the monetary policy rate, we have just been appointed,” Isarescu said.

In its meeting of 4 July 2019, the Board of the National Bank of Romania decided to keep the monetary policy rate at 2.50 percent per annum.

The Parliament, in extraordinary session, voted on Wednesday, by majority of votes that Mugur Isarescu will remain National Bank Governor for the 7th consecutive term. Isarescu has entered the Book of Records since 2009, as the longest serving governor of a central bank.

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