RRI Live!

Listen to Radio Romania International Live

Optimistic Economic Forecasts

The National Bank of Romania has lowered the inflation forecast for this year and the next to 3.1%.

Optimistic Economic Forecasts
Optimistic Economic Forecasts

, 08.08.2013, 14:20

In Romania, the inflation forecast for 2013 and for next year has been lowered to 3.1%, that is by 0.1% compared to previous figures. The Central Bank has analyzed and endorsed the quarterly inflation report, which points to a stronger disinflation process for the forthcoming period and an accelerated economic growth.



Governor Mugur Isarescu: “Our target is 2.5%. As far as our 3.1% forecast goes, we might get closer to that target by the end of the year or even sooner. The main factors that will be keeping inflation down are the prices of foodstuffs and farm products, which will go down in July, August and September, and the fact that last year these prices increased significantly. So the difference will be substantial.”



Mugur Isarescu added that the institution will do its best, using the tools available to it, to ensure that interest rates for loans in the national currency get as close as possible to the rates on foreign currency loans, so that bank clients may choose to borrow lei and thus reduce the risks related to exchange rate variations.



Mugur Isarescu: “The foreign currency resources of many banks are not as steady and low-priced as they used to be. Parent banks have become more cautious, or have problems of their own. Foreign currency loans have a visible, explicit cost, but also a hidden, uncertain cost component, and this is what triggers abusive clauses. By reducing the monetary policy interest rate and assuring adequate cash flows in the market, we will do our best to push interest rates for Romanian currency loans closer to those for foreign currency crediting.”



The new European regulations discourage foreign currency loans, the central bank governor also said. He explained that such loans have an unpredictable and highly dangerous component, which has become evident over the past few years and affected the resources of many Romanians who had thought foreign currency loans are more advantageous. The National Bank has reduced the key interest rate from 5% to an all-time low of 4.5%. At present, the average interest rate on a mortgage-backed loan in lei is 8%, as compared to 4.5% for a similar product in euros. According to analysts, taking out loans in the national currency is by 30% more expensive than in euros.

Klaus Iohannis, at the EPC summit (Budapest, Hungary)
Today in the News Friday, 08 November 2024

EPC meeting in Budapest

European leaders met in Budapest to discuss security challenges facing Europe, with an emphasis on the situation in Ukraine, as well as the issues of...

EPC meeting in Budapest
Photo: pixabay.com
Today in the News Friday, 08 November 2024

Romania, from wages to youth unemployment

Data from the Statistical Office of the European Union – Eurostat show that the adjusted average annual full-time salary of Romanians is the fourth...

Romania, from wages to youth unemployment
Donald Trump (Photo: Facebook / Donald J. Trump)
Today in the News Thursday, 07 November 2024

Reactions to the election of Donald Trump

Many political leaders around the world have reacted by congratulating the Republican Donald Trump, who announced his victory in the US presidential...

Reactions to the election of Donald Trump
Foto: pixabay.com
Today in the News Thursday, 07 November 2024

Farmers and the Common Agricultural Policy

The Romanian Minister of Agriculture Florin Barbu and the European Commissioner for Agriculture, the Polish Janusz Wojciechowski, who is on formal...

Farmers and the Common Agricultural Policy
Today in the News Wednesday, 06 November 2024

Roxana Mînzatu, endorsed by the Romanian Parliament

Romanian Government’s proposal for the position of European Commissioner in the future Community Executive, the Social Democrat Roxana Mînzatu has...

Roxana Mînzatu, endorsed by the Romanian Parliament
Today in the News Wednesday, 06 November 2024

Japanese Investments in Energy and Technology

Important Japanese companies have expressed their interest, these days, in Bucharest, to invest in Romania, in transport infrastructure, energy,...

Japanese Investments in Energy and Technology
Today in the News Tuesday, 05 November 2024

NATO must stay united

NATO will work with the winner of the US elections, whoever that person may be and will do its best to stay united, NATO secretary general Mark Rutte...

NATO must stay united
Today in the News Monday, 04 November 2024

Moldova stays on path to Europe

Moldova’s pro-European president Maia Sandu won a new  4-year term in Sunday’s second round run-off, with over 55% of the votes cast in the...

Moldova stays on path to Europe

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