The BNR has revised downward the inflation forecast

Romania has strengthened its position in terms of inflation, within the European Union being eight states that have higher inflation, says the governor of BNR, Mugur Isarescu. During the presentation of the quarterly report on inflation, he stated that, now, the forecasts of the Central Bank indicate an inflation level of 7% at the end of 2023 compared to 11.2% in the November report. Mugur Isarescu says that a balance must be achieved between fighting inflation and avoiding a possible recession.

Mugur Isarescu: I am a follower of a gradual /.../ monetary balancing. We are working with the government, of course. We would like them to do more. However, we have to be realistic, we'll see what they can do. It would be worse to promise and not do. If they say, sir, that's all we can do, I say it's healthier.

Mugur Isarescu adds that we must also look to our neighbors, and that he does not believe that inflation, in Europe, will be able to be brought quickly, before the end of next year, to the range targeted by the central banks. He specifies that the inflation forecast is marked by numerous uncertainties, almost all the elements that can influence the evolution of prices can evolve either in a positive or negative sense, in one context or another.

Translated by: Radu Matei