RRI Live!

Listen to Radio Romania International Live

BNR – Anti-inflationary measures

The National Bank of Romania announces new economic measures, given that the inflation rate will increase next year above the previously forecast values.

BNR – Anti-inflationary measures
BNR – Anti-inflationary measures

, 10.11.2021, 14:00

On Tuesday, the National Bank of Romania decided to increase both the monetary policy interest rate and the interest rate at which banks can still borrow from the Central Bank, in an attempt to control the skyrocketing inflation. Monetary policy interest rates rose from 1.5% to 1.75% per year, just one month after a similar measure. Analysts expected it to increase, especially as other central banks in the region have recently made such decisions. The central bank communiqué shows that the inflation rate continued to rise and remain well above 3.5%, i.e. the upper limit of the banks target interval, due to the considerable increase in natural gas and electricity prices in July. Another cause was the continued increase in fuel prices and the significant growth of vegetable prices in September.



The annual inflation rate is expected to continue its upward trend until the middle of next year, mainly as a result of increases in energy prices in the last three months, also estimated for the first quarter of 2022, in the context of strong international growth. Economic analyst Adrian Codîrlaşu explained for Radio Romania that the increase in prices is also a global consequence of the fact that many countries no longer wanted to use energy that pollutes the environment, and this trend will continue in the long run, he believes.



Adrian Codîrlaşu: “For the future, these prices are also expected to remain volatile. Maybe they will no longer grow over the current level, except for oil, but they will remain very volatile, as energy systems are undergoing a transformation to meet the new requirements of regulators on pollution. So, we have this shock and what do we consider important? The price of any good or service in the consumer basket will be affected by at least one of these energy products. Why? Because these products contribute to the production of the good or the provision of the service, so we will have what is called second round inflation or second round effects, therefore, an increase in inflation by transposing the prices of these energy products into all goods and services in the consumption basket.”



According to the BNR, the inflation rate is expected to drop relatively quickly and fall below 3.5% in the third quarter of 2023. Until then, however, the National Institute of Statistics announces that the annual inflation rate rose to 7.9% in October 2021, from 6.3 % in September, given that electricity, natural gas, fuels and edible oil prices had the biggest increases in the last year. In addition, October is the first month in which there has been no price reduction compared to the same month of the previous year. (LS)

(Photo: pixabay@Engin_Akyurt)
Today in the News Thursday, 31 October 2024

Romanians’ concerns

Romanians and Austrians are the most satisfied with their lives among the inhabitants of Central and Eastern Europe, but the former are significantly...

Romanians’ concerns
Elections in Moldova (Photo: Radio Chișinău)
Today in the News Thursday, 31 October 2024

Republic of Moldova, crucial final

On November 3, the citizens of the Republic of Moldova have to choose, for the position of head of state, between the pro-European Maia Sandu, the...

Republic of Moldova, crucial final
Foto: Baza 71 Aeriană / MApn
Today in the News Wednesday, 30 October 2024

Drones, a security issue

The Romanian Ministry of National Defense has placed under decisional transparency a bill that improves airspace security measures. The bill, which...

Drones, a security issue
Foto: pixabay.com
Today in the News Wednesday, 30 October 2024

The Fugitive Law is constitutional

The Constitutional Court of Romania (CCR) has rejected the referral of the High Court of Cassation and Justice (ICCJ) in relation to the so-called...

The Fugitive Law is constitutional
Today in the News Tuesday, 29 October 2024

Challenges of an ageing population

Romanians are getting fewer and older.   The population of Romania in mid-2024 was 21,779,000, down 1% compared to June 1, 2023. According to...

Challenges of an ageing population
Today in the News Monday, 28 October 2024

Romania sees rising public debt levels

Government debt rose in July to over 876 billion lei (that’s around 175 billion euros), from 860 billion lei in the previous month, according to...

Romania sees rising public debt levels
Today in the News Monday, 28 October 2024

Presidential debate in the Republic of Moldova

An unusual electoral debate, in form, but predictable in content, had as protagonists, on Sunday, the two remaining candidates in the presidential...

Presidential debate in the Republic of Moldova
Today in the News Friday, 25 October 2024

The presidential campaign begins

  Romania saw the start of the campaign for the first round of the presidential election on Friday. The campaign ends at 7 am on November 23....

The presidential campaign begins

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company