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Central Bank may increase monetary policy interest rate 0.5%

de Radu Big
Joi, 3 ianuarie 2008, 20:13 English | Business

Romania Central Bank (BNR) may increase its monetary policy interest rate 0.5%, up to 8%, during its first board session this year, analysts in the Romanian Commercial Bank (BCR) declared. Referring to the inflation rate, BCR analysts say it may reach 4.8% in 2008, a margin in the upper limit aimed by BNR (3.8 +/- 1%).

"The inflation target is a challenge, but not an impossible one", say the BCR analysts, "in case the things go normal in the Agriculture". BCR estimates a 13.7% current account deficit in 2007, growing to 14.7% of the GDP in 2008. The expected economic growth is 12.7% for the end of 2008, after a slowdown to 5.7% in 2007.

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