Bucharest - - Romania could reach an inflation rate of 8% by the end of the year, to be reduced to 5% in 2006, National Bank of Romania (BNR) announced, according to ACT Media news agency reports.
The revised inflation target set at 7.5%, so, the rate could reach around 8%, or a little higher.
As for 2006, the target is estimated at 5%, with plus or minus one percent margin.
In August 2004-August 2005, the consumer price index lowered to 8.9%.
The increase was triggered by the rise in regulated prices and in international oil prices.
In August, BNR adopted the inflation targeting strategy intended to reduce the price increase rate before Romania 's European accession scheduled for 2007.
BNR could use the interest rate policy to increase the level of Romanians' savings and encourage banks to reduce interest rates charged for credits in RON.
Bank's officials stated that they monitor the market and will take the necessary steps to consolidate the savings process, to reduce inflation and ensure financial stability.
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