Romania central bank revises 2020 CPI forecast to 2.7pc vs 2.8pc

BUCHAREST: Romania's central bank revised down slightly its annual inflation forecast for this year and kept the 2021, figure flat, it said in its quarterly inflation report released on Thursday.

Policymakers see inflation at 2.7pc in December, down from a previous forecast of 2.8pc.

They see it at 2.5pc at the end of next year.

The bank cut its benchmark interest rate by a quarter point to 1.50pc on Wednesday and pledged to continue providing market liquidity in the face of the uncertainty caused by the coronavirus pandemic.

The bank, which targets inflation at 1.5-3.5pc, said it saw larger budget spending triggered by a potential extension of the public health crisis.

"Specific risks stem from a larger volume of budget expenditures, triggered by a potential extension of the public health crisis either due to an escalation of the unfavourable medical situation at local level, as seen in recent weeks, or associated with a possible worsening of the global pandemic, linked to the onset of the cold season," it said.