Authorities should consider not liberalising the natural gas tariff in April 2026, as the National Bank is struggling with inflationary expectations that could spiral out of control, said the president of the Fiscal Council, academician Daniel Daianu.
"The budget deficit keeps monetary policy hostage. Our policy rate, only matched by Hungary at 6.5%, is very high, and many wonder why. It's high because of a large budget deficit and exceptional inflation. Now we also have this spike caused by the package of measures, which was inevitable. The policy rate cannot drop rapidly. I believe it would make sense, for instance, to consider not liberalising the gas tariff in April 2026, because the National Bank is fighting inflation expectations that could get out of control. Once inflation clearly trends downward and the 2026 budget execution shows a deficit close to 6%, consistent with this forecast, it will be possible to lower the policy rate. But it cannot be eased now," Daianu said on Monday at the conference "Budget and Taxation 2026: Fiscal Effects and Economic Expectations," organised by CursDeGuvernare, agerpres reports.
He added that while some argue the policy rate could be lowered to stimulate the economy, this is not appropriate when a broad correction is needed.
"We have already stimulated it enough and ended up with our sheep in the garden, reaching a 9% deficit," Daniel Daianu stated.
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