The Romanian government should consider not liberalising the natural gas prices in April 2026, because the central bank is struggling with inflationary expectations that could get out of control, says chairman of the Fiscal Council, academician Daniel Daianu.
"The budget deficit keeps monetary policy hostage or prisoner. The level of the monetary policy rate in Romania at 6.5% - similar only to Hungary's - is very high and many wonder why it is so high. It is very high because you have a very large budget deficit and you have an extraordinary inflation. And now we also have this spike caused by the package of measures, which was inevitable. Nor can it quickly lower the monetary policy rate. I think it would make sense, for example, to consider liberalising the natural gas prices in April 2026, because the central bank is struggling with inflationary expectations that could get out of control. Therefore, when inflation consolidates on a clear downward trend and the budget implementation in 2026 will show that deficit target that is close to 6%, to be clear that we have a budget implementation according to this forecast, it will also be possible to lower the monetary policy rate. It cannot be lowered now," Daianu said on Monday at the conference "Budget and Taxation 2026: The effects of taxation and the expectations of the economy" organised by CursDeGuvernare.
He said that there is a thesis that the monetary policy rate can be lowered to help or boost the economy, but he warned that that is not an appropriate measure when you want to make a large correction.
"We stimulated it so much that we ended up blowing it, nearing a deficit of 9%," said Daianu.
Comentează