Tuesday, November 3, 2009

Romanian cbank stays cautious, urges meeting IMF terms

BUCHAREST, Nov 3 (Reuters) - Romania's central bank said on Tuesday that monetary policy would remain prudent as an ongoing government crisis had worsened Romania's image among investors, and it and urged for rapid implementation of IMF aid conditions.

Earlier on Tuesday the bank unexpectedly kept its benchmark interest rate unchanged at 8 percent, signalling it was cautious of economic risks stemming from an October government collapse and a political deadlock over appointing a new cabinet.

The bank said it expected inflationary pressures to rise in the short-term and said quickly enforcing of conditions attached to Romania's 20 billion euros aid deal was necessary to anchor inflationary expectations and help the economy recover.

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