Thursday, September 10, 2009

Romanian cbanker sees room for manoeuvre on policy

BUCHAREST, Sept 9 (Reuters) - The Romanian central bank will have room for manoeuvre in monetary policy in the coming four months because of falling inflation, central bank governor Mugur Isarescu said on Wednesday.

Speaking to Reuters in an interview, Isarescu also said the bank had a 'good chance' to meet its 2009 inflation target of 2.5-4.5 percent on the year in December. Perhaps the monthly inflation figure will be negative (for August) and with the reduction in fuel prices in September, there are good chances (for inflation) to be within target,' he said.

The governor said Romanian manufacturing was showing 'very visible' signs of recovery but said that foreign direct investment flows, a key driver of economic growth in recent years, would not return to pre-crisis levels any time soon.He also warned that Romania's goal of becoming euro-ready in 2014 had become more ambitious in recent months, as recession forced Bucharest to up its budget deficit target sharply.

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