Monday, November 9, 2009

Romania cbank revises upwards 2009 inflation fcast

BUCHAREST, Nov 6 (Reuters) - Romania's central bank revised upwards its annual inflation forecast for December 2009 to 4.5 percent, due to higher excise taxes but kept its 2.6 forecast for 2010, central bank Governor Mugur Isarescu said on Friday.

'Our (2009) forecast is 4.5 percent. The main factor is tobacco excise duties,' Isarescu told a news conference where he presented the bank's quarterly inflation report.

The central bank is targeting 2.5-4.5 percent inflation at the end of this year and next.

Isarescu also said the main reason the bank kept rates on hold at 8 percent a monetary policy meeting on Tuesday was 'uncertainty' and that it was difficult to reduce the official cost of borrowing when money market rates were high.

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