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Romanian Bks Need Macroeconomic Adjustment To Lower Rates – Ctrl Bker

Romania’s banking system will not be able to reduce interest rates without a prior macroeconomic adjustment that would lower the inflation and would stabilize the exchange rate, according to Ion Dragulin, head of the central bank’s financial stability department.
Romanian Bks Need Macroeconomic Adjustment To Lower Rates - Ctrl Bker
15 oct. 2009, 14:51, English

The central bank BNR cannot give excessive positive signals on the market because some of them might have backwards effects.

„As regards the capacity to lower the interest rates, there is still room, and BNR’s messages follow this path. BNR will confirm this trend through its behavior, but will not be able to make too many steps in this respect, due to the foreign context,” he said.

Moreover, the banks show lack of trust towards the market, Dragulin added.

Due to the current macroeconomic conditions, the exchange rate cannot be stable in the following period, he said.