Investors reassured about Romanian economy
Romania's central bank has pledged its full support to diminish the currency inflation presently affecting investors, it has emerged.
Inflation has caused the leu to fall 15% against the euro after hitting a five-year high in July, reports the Guardian.
The government may consider tightening fiscal and wage policies to boost economic productivity and competitiveness in response to the issue, the article notes.
Interest rates are likely to be increased above the current 7.5% by Romania's central bank in January, analysts have reportedly predicted.
"Investors … need to know the central bank will work with all intelligence to diminish [its] negative effects," said Mugur Isarescu, central bank governor in Romania, according to the newspaper.
He attributed the country's inflationary problems to the economic fluctuations that come within a globalised world.
"Turbulences can be softened but in now way annihilated," Mr Isarescu added.
Romania's gross domestic product growth will increase at a predicted rate of five to 5.5% during 2008-09, the Economist predicts.
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