Stiri	Stiri afaceri	Stiri companii	Evenimente de afaceri

Isarescu: Volatile prices will not help us fight inflation

Romanian Central Bank (BNR) governor Mugur Isarescu continues to see the volatile prices as a danger to the inflation in Romania and he promises to keep on conducting a restrictive monetary policy.

Isarescu presented on Thursday the quarterly inflation report announcing a revision to 6 percent of the inflation prognosis by late this year, namely from the previously expected level of 5.9 percent. 'We believe volatile prices, that for fuel included, will fail helping us by autumn. We had to revise and raise the price for fuel, taking into account the oil price on the foreign markets. The prognosis is positive related to the restrictive monetary policy next year. Thus we expect inflation to drop from 3.9 to 3.5 percent by end 2009', he said. Subjective elements are also a real danger to inflation, Governor Isarescu believes. 'Inflation is expected to grow in the short run, and it must be tempered. The National Bank plays an important part in this. This is BNR's mission,' Isarescu pointed out. BNR official also stressed the potential reasons of the deviation in the inflation rate from the level forecast for 2008 and 2009, and spoke about continuing to rise the salary, without it to be mirrored in the productivity, the depreciation of the Romanian currency because the persistence of the problems on the foreign markets, the rise in fuel price that for oil included. Nevertheless, BNR is not against salary rise, but it must have a real base, Isarescu stressed. 'BNR does not mind pay increase, at all, but it must be real, true, backed up by productivity, economically substantiated and sustainable. Rising the salary only on nominal bases can turn everything from an illusion into a disillusionment. We could have a more relaxed budgetary execution, in this election year, Isarescu concluded. Sursa: http://www.rompress.ro

Tags: inflation isarescu prices volatile bnr bnr

Articole similare