By Adam Brown
An interest rate more than three percentage points above the inflation rate is unsustainable for Romania, Isarescu told the daily financial newspaper.
The country’s annual inflation rate slowed to 6.5 percent in April and the central bank targets a year-end rate of between 2.5 and 4.5 percent. The interest rate stands at 9.5 percent, tied with Hungary for the highest in the European Union.
Isarescu also told Ziarul Financiar that a summer drought could drive up food prices, accelerating inflation in the second half.