Echoing the Prime Minister later in the day, Romania’s central bank governor described the country’s economic growth as robust and sustainable and its fiscal deficit being back in the comfort zone, complying with European Union norms while inflation had reached historical lows.
Mugur Isarescu told the Euromoney conference in Bucharest that Romania must now focus on structural reforms: "To underpin the viability of the economy is very important."
On May 6, the central bank surprised markets by shaving another quarter point off its benchmark interest rate to a new low of 1.75 percent — still higher than rates in most other EU states, where some are negative.
It also cut its inflation forecast to 0.2 percent this year from 2.1 percent, as a sharp cut in value-added tax took effect.
Earlier this year, Isarescu said Romania had a problem implementing structural reforms and meeting the real convergence criteria for joining the euro zone by the target date.
