Romania's central bank could tighten monetary policy earlier

Romania’s National Bank (BNR) could tighten the monetary policy sooner than originally estimated, as inflation could return to an upward trend, said the BNR governor Mugur Isarescu. The central bank could thus reduce this year the gap between the interest rate in the market and the monetary policy rate. However, the authorities will take this measure only if it doesn’t lead to a high appreciation of the Romanian currency leu, Isarescu added, reports local Profit.ro. The country doesn’t need an appreciation of the leu. The Romanian currency has had a sustainable evolution in the last year and a half, and it is now at a “correct” level, the governor said. editor@romania-insider.com