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Romania's c-bank lowers 2019 inflation forecast to 3.8%

Romania's c-bank lowers 2019 inflation forecast to 3.8% Romania's central bank governor Mugur Isarescu

BUCHAREST (Romania), November 8 (SeeNews) - Romania's central bank said on Friday said it has decided to lower its 2019 inflation forecast to 3.8% from 4.2% predicted in August, outside its target band of 1.5-3.5%.

The central bank, BNR, has also lowered its projection for 2020 inflation to 3.1% from 3.4%.

"Romania's annual inflation could re-enter the target range by the end of this year if oil prices keep falling," central bank governor Mugur Isarescu said in a presentation of the bank's November inflation report.

According to BNR, Romania's annual inflation rate will remain above the upper end of the target range over the entire 2019, following supply-side shocks in the first half of this year. Subsequently, inflation will re-position and maintain itself in the upper half of the target range as the effects of those shocks will fade away .

Romania's consumer prices rose by 3.5% year-on-year in September, compared to an increase of 3.9% in the previous month, the national statistical office has said.

BNR maintained its monetary policy rate at 2.50% on Wednesday.

The central bank last changed its key rate in May last year, increasing it to 2.50% from 2.25%, the third rate hike in 2018.

(1 euro=4.7615 lei)