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The National Bank of Romania (BNR) has introduced the spread of the coronavirus among the factors that could contribute to reducing inflation this year, BNR governor Mugur Isarescu told a press conference on the Inflation Report on Tuesday.
"We have no additional data, but we decided to introduce this phrase for two reasons: because we've seen the reaction of the World Health Organization, and especially following the latest statement or opinion of a UK institute. From our international experience, such stances are not accidental, unelaborated, the wording is carefully weighed. The statement that emerged a day or two ago in the UK is more than worth considering. We therefore introduced this element, for now at the 'Risks' rather than at the 'Uncertainties' chapter. Anyway the trend will be to slow down global economic growth," said the central bank governor.
Other factors which, the BNR considers, could take inflation to a lower than forecast value are: developments of the euro-area economy (geopolitical tensions, vulnerabilities of emerging markets), the possible escalation of trade conflicts, the end of Brexit, as well as the accommodative behavior of the ECB and Fed monetary policies.
The National Bank of Romania has lowered its 2020 inflation forecast to 3 percent from the previous estimate of 3.1 percent, central bank governor of Mugur Isarescu told a press conference on Tuesday.
AGERPRES
