BUCHAREST: Romania's central bank is not concerned about deflation, central bank Governor Mugur Isarescu said on Wednesday, as annual consumer price inflation fell to a fresh all-time record low of 0.7 percent in June helped by sinking food prices.
Isarescu told a news conference to present the quarterly inflation report the current forecast comes with a great range of uncertainty stemming from external factors. "Inflation fell a lot in Romania, this isn't concerning in the slightest.
We have economic growth, if we want higher growth it's not low inflation that inconveniences us."
The bank cut its benchmark interest rate to a record low of 3.25 percent on Monday and hinted it could cut further as food prices tumble.
It revised down forecasts for this year and 2015 to 2.2 percent and 3 from a previous 3.3 percent for both years.
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