Inflation will be reduced to below 10% during this year, estimates the advisor to the BNR governor, Adrian Vasilescu

Inflation will be reduced to below 10% during this year, estimates the adviser to the BNR governor, Adrian Vasilescu. In a Radio Romania News program, he estimated, today, that at the end of 2023 this economic indicator will reach 7%.

Adrian Vasilescu: Monetary policy, which goes with the interest rate, which is very sensitive, because if a demarcation line is not correctly drawn, a balance line in such a way that the interest rate of the monetary policy is not so high as to hit the economy and produce a recession, and not be even lower, so as not to have an effect on inflation, I can say with my hand on my heart that this line is correctly drawn by the National Bank and the results are correct. We no longer have spectacular increases, we no longer have inflation peaks.

In the same program, the president of the Fiscal Council, Daniel Daianu, explained again that Romania needs budgetary consolidation, which will be more and more difficult to achieve in the coming years due to fiscal policy errors, as a result of which structural deficits and inequities have deepened. He emphasized that the solution is not to drastically cut expenses, but to increase tax revenues by reforming the fiscal regime, which at the moment is a regressive one - those with lower incomes pay proportionally more.

Translated by: Radu Matei