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Romania's c-bank lowers 2020 inflation forecast to 3%

Romania's c-bank lowers 2020 inflation forecast to 3% National Bank of Romania. Author: Gabriel. Licence: Creative Commons, Attribution.

BUCHAREST (Romania), February 11 (SeeNews) - Romania's central bank said on Tuesday it has decided to lower its 2020 inflation forecast to 3.0% from 3.1% predicted in November, still inside its target band of 1.5-3.5%.

In 2021, the central bank expects that consumer prices will rise by 3.2%.

"Demand remained robust against the backdrop of wage increases and lending was strong too, but part of the consumption fuelled the trade deficit," central bank governor Mugur Isarescu said in a presentation of the bank's February inflation report.

According to the central bank, Romania's annual inflation rate will be declining in the early months of 2020, but starting April, it will return to the upper half of the target range.

Romania's consumer prices rose by 4.04% year-on-year in December, compared to an increase of 3.77% in the previous month, the national statistical office has said.

On Friday, the central bank decided to keep its monetary policy rate unchanged at 2.50%. The central last changed its key rate in May 2018, increasing it to 2.50% from 2.25%.

(1 euro=4.7668 lei)