Senate's Speaker Calin Popescu-Tariceanu considers that a slight inflation of 1.5-2% is beneficial for economic growth and that the National Bank of Romania (BNR) decision to increase the monetary policy rate "is not currently an element of concern."
"Japan has struggled for years to put the economy on the inflation. A slight inflation of 1.5-2% is beneficial for economic growth. I do not think we are in danger of having an inflation rate to go beyond the European average and to affect the operation of the economy, and not only the functioning of the economy, but also affecting personal incomes. There are provisions related to indexing certain obligations of the state and of the Government to citizens function of the inflation rate and this works very well. So the Romanian economy is an economy that has a very good growth performance, an increase that could be based (...) to the greatest extent on investments. The same was said also by the National Bank. I support this idea and I believe that the Romanian economy will continue this positive and ascending trend in the coming years too. I do not see currently an element of concern regarding the interest rate increase decided by the National Bank," Tariceanu said on Tuesday at the Senate.
The Board of the National Bank of Romania decided to increase the monetary policy interest rate to 2% per annum from 1.75% per year, on January 9, BNR informed on Monday.
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