Loading ...The inflation rate year-on-year is set within the Technic Memorandum of Understanding, which is an addition to the Stand-By Agreement between Romania and the IMF, made public on Friday on the Finance Ministry’s website.
The document stipulates that the quarterly consultation bands for the 12-month rate of inflation in consumer prices (as measured by the headline consumer price index (CPI) published by the Romanian Statistical Institute), are set at 4.5 percent in December 2009 and 2.5 percent in December 2010, +/- 2 percent.
Should the observed year-on-year rate of CPI inflation fall outside the outer bands specified above, the authorities will complete a consultation with the Fund on their proposed policy response before requesting further purchases under the program.
In addition, the NBR will conduct discussions with the Fund staff should the observed year¬on-year rate of CPI inflation fall outside the inner bands specified for the end of each quarter (minus 2 percent).
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