“The monetary policy continues to be overloaded and is clearly an extremely tight one, especially if we look at interests and the Cash Reserve Ratio. However, it is clear that we cannot relax it until fiscal policy measures begin to function,” said Isarescu.
He emphasized the dispositions regarding salaries and transferring expenses from consumption toward investments, as BNR supports the dispositions included in the budget draft.
After several years of salary rises above productivity gains, at present “you cannot even mention salary rises and we have pressure on the exchange rate,” Isarescu added.
According to BNR’s Governor, Romania is currently facing a type of recession which implies a sharp decline in the economy, followed by economic growth in a short period of time. “We do not know what will happen, but we are prepared for the worst,” said Isarescu.
