BNR official:there are no reasons to increase the interest rate

Daniel Daianu, member in the Board of the National Bank of Romania (BNR) stated on Friday that he sees no reasons to increase the interest rate, even if the country is close to getting out of the negative inflation, Reuters says.

‘We have inflationist pressure following the increase of salaries in the public and private sector; these pressures are partially compensated by the gains in productivity. That is why, we appreciate that it is not the right moment to tighten the monetary policy. There are no convincing reasons to increase the interest rate’ stated Daianu at a conference organised in Warsaw by the Central Polish Bank.

On 30th September the Board of the BNR decided, unanimously to keep the monetary policy rate at 1.75% per year, appreciating that there are no ‘ over heating signs’.

At the same time, Daianu assured that BNR is ready to intervene if the plan regarding the conversion of mortgage loans in CHF will lead to trouble on the market, a scenario which the BNR official sees it as unlikely.

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