Wednesday, August 10, 2011

Romania cbank cuts 2011 inflation forecast to 4.6 pct y/y

Aug 8 (Reuters) - Romania's central bank expects annual inflation to slow to 4.6 percent at the end of 2011 due to a good harvest and as the impact of higher value added tax washes out, its governor said on Monday.

The central bank sees annual inflation at 3.5 percent at the end of 2012, Mugur Isarescu told a news conference, in remarks which may indicate leeway to cut interest rates next year.

The central bank had previously forecast 5.1 percent annual inflation at the end of 2011 and 3.6 percent at the end of 2012. (Reporting by Radu Marinas and Luiza Ilie; Editing by Sam Cage)

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