Romanian Ctrl Bk Revises ’08, ‘09 Inflation Forecasts

"We should not doubt the economy is overheated. If the economy is overheated, negative effects trigger inflation pressure and external deficit which strives to reach 14%," BNR governor Mugur Isarescu said Monday.

Isarescu added the economic growth could set between 8% and 9% at yearend, while inflation rate between 6% and 7%.

The central bank has set an inflation target of 3.8% for 2008, and of 3.5% for 2009, with a plus or minus average of one percentage point.

Isarescu said the inflation target for 2010 is a tough decision, and after talks with the central bank’s administration board will give further data in that respect.