Press Review - March 30, 2018

03.30.2018 By Oana Gavrila

Governor Says Central Bank Is Between a Rock and a Hard Place

Romania's central bank was forced to raise its monetary policy rate twice due to accelerated inflation growth, which has ample effects on the economic environment, governor Mugur Isarescu told senators of the economic committee Thursday.

“As regards the firmness of monetary policy, we are between a rock and a hard place. Some have accused us of not being firm enough, others said we rammed our heads into economic growth by raising the key rate, Given the context, we believe our reaction was proportionate given the risks and it will work,” said Isarescu.

He added the central bank has no other solution but to raise the monetary policy rate even further unless its monetary policy is aided by fiscal policy to deal with inflationary pressures.

Landslides Delay Opening of Sebes-Turda Highway

Landslides on the fourth lot of the Sebes-Turda highway are delaying the road's opening to traffic as workers try to stabilize it.

The highway section is 99% done but a recent landslide has cracked the layer of asphalt.

Alin Serbanescu, spokesman for the country's road authority, said the incident might be due to faulty works and the road would not be open until it is safe.

Glitch Disconnects Romania's Nuclear Power Station

Nuclearelectrica, operator of Romania's nuclear power plant in Cernavoda, said the second reactor unit disconnected from the national grid automatically due to a glitch in the electrical system.

It said specialists were investigating the cause and would make repairs as necessary, adding there was no danger for staff, the public or the environment.

The second reactor unit had returned to full power on Monday after running at 55% through the weekend due to a part that needed replacement. Also last weekend, the first nuclear reactor unit was shut down.

The nuclear power plant in Cernavoda ensures nearly 20% of Romania's energy needs.