NBR reduces inflation forecast

The Quarterly Inflation Report shows in perspective a more pronounced disinflation process in the near future, along with an acceleration of economic growth.

NBR believes that the inflation rate will reach a minimum of 2.1 percent in the first quarter of next year.

"We see a higher economic growth in the future, but not with numbers too much different. Regarding the annual inflation projection, the agreement is adjusted, our forecast is for a cap, a settlement of this core inflation, which we can actually target and control around 2 percent, I think it's reasonable, "said Mugur Isarescu.

Board of Directors of the National Bank of Romania decided on Monday, reducing the policy rate, from 5 percent to 4.5 percent per year, more than Banking Financial analysts expected, who expected a decrease of 4,75 percent, while the central bank reserving the ratios at minimum.

Also, CA has decided the adequate management of liquidity in the banking system and maintaining the current levels of minimum reserve required ratios on both domestic and foreign credit institutions.

"CA of NBR has examined and approved the quarterly Inflation Report, document which will be unveiled in a press conference on August the 7th 2013," reads a press release of the Central Bank.

Translated by Alexandra Diana Mircea