Nouriel Roubini: BNR's monetary policy to maintain interest rate stable is correct

He said that an increase in BNR can 'cut the wings' of economic recovery and the interest rate's movements in one direction or another would influence foreign capitals, exchange rate and exports or would increase inflationary pressures. Referring to the growing inflation Romania is facing, Roubini said that more than half of the consumption basket is represented by energy and food, and the effect of rise in international prices on local inflation is much more significant than in other states. American economist said high inflation in Romania is temporary, and influenced also by the increase in VAT last year, and that it would return to a downward trend. As to the economic growth, the economic analyst said that in Eastern Europe economic growth would continue, but it can only be modest until new structural reforms are made, the tax conditions are improved and global economy becomes stronger. However, Roubini considers that in 2012 economic growth will be higher than in 2011.

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