The National Bank of Romania will not hesitate to intervene on the currency market if the inflation target for 2008 is threatened, the chief economist of the central bank Valentin Lazea told BBC.
“The recent depreciation of leu over the past weeks is not found in Central European states, such as the Czech Republic, Poland and Hungary. Romania has a problem differentiating us from the other states, and that is the current account deficit. The economic growth in Romania is based mainly on consumption, not on export, like in the mentioned states. The bank operates with the interest rate and keeps its right to use other instruments, such as direct interventions on the currency market, but will not announce them beforehand,” said Lazea.
The annual inflation in 2007 was 6.57 percent, after the Central Bank had targeted it at 5 percent.
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