Romania's C-Bank Raises End-'09 Inflation Fcst to 4.5%, Keeps End-'10 Fcst at 2.6% - Media

BNR also affirmed its end-year inflation target for 2009 and 2010 at 3.5%, with one percentage point variation band on either side, The Money Channel (www.tmctv.ro) quoted BNR governor Mugur Isarescu as saying while presenting the central bank's quarterly inflation report.

"Disinflation deepened in the third quarter. The annual inflation rate has been slowing down on all components. We are getting closer to the moment when annual inflation will enter the variation band," Isarescu said.

He added that consumption continued to fall in the third quarter, while Romanians started to make savings. "We had a remarkable jump in money savings in Romania. It was some kind of panic and the population started putting money aside."

Isarescu added the leu exchange rate's volatility was moderate in the past few months and there was no need for an adjustment of the rate.

"Current account deficit has adjusted much above expectations. […] Further depreciation of the exchange rate will lead to further adjustment of the current account," Isarescu said.

He said that the current account deficit has narrowed towards 4.0% of gross domestic product (GDP) this year from more than 12% last year.

Romania's annual consumer price inflation slightly decelerated to 4.94% in September from 5.96% in August.