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Romanian Ctrl Bk Sets ’10 CPI Target At 3.5%, Same As In ’09

The National Bank of Romania, or BNR, set the 2010 inflation target at 3.5%, with a one percentage point variation band, similar to 2009's target, keeping thus the February working version.
Romanian Ctrl Bk Sets '10 CPI Target At 3.5%, Same As In '09
07 mai 2009, 11:47, English

Central bank governor Mugur Isarescu said Thursday the target was established together with International Monetary Fund representatives. "It’s a realistic and attainable inflation target, in an economic context with a lot of uncertainties," Isarescu said.

The annual inflation rate was 6.3% at the end of 2008, down compared to 6.57% in December 2007, but 1.5 percentage points above the upper limit of the variation band. Last year, the central bank’s target interval was at 2.8-4.8%, while the target for 2007 was at 3%-5%.

Romania agreed end-March with the IMF, the European Union and other international institutions a EUR19.95 billion financial package, supported by a EUR12.95 billion IMF loan under a two-year standby arrangement.

Under the agreement, Romania has to meet inflation performance criteria, among others. Thus, at the end of 2009, the inflation rate has to be at 4.5%, and it has to fall to 2.5% by the end of 2010.