Romania Central Bank Doesn’t Want More Rate Cuts

06.16.2015 By Bogdan Neagu

Romania’s central bank will try to refrain from cutting the monetary policy rate even if the inflation falls in negative territory, as the economy is expected to grow 4% this year and won’t need an additional support, governor Mugur Isarescu said Tuesday.

“We are trying to resist and not reduce more the policy rate,” Isarescu told an investors’ forum organized by the Bucharest stock exchange in Bucharest.

Romania will have negative readings of the consumer price index over the next quarters, the governor said, but it won’t record deflation.

The central bank sees the inflation rate near zero for the next three to four quarters, following the government’s decision to cut the value added tax rate for all food products to 9% from 24% starting June 1.