BNR adopted inflation targeting in 2005 and managed to acquire its objective in only one year, 2006, respectively, when the annual inflation rate at yearend, of 4.87% was below the announced target of 5% with 1% tolerance band.
In 2005, BNR missed by narrow margin the inflation target, and in 2007 the annual inflation was significantly above the 4% target, with 1% tolerance band.
For 2008, BNR has set a 3.5% inflation target, with 1% tolerance band. However, analysts warned that a new failure of the inflation target could peril Romania’s adoption of euro currency in 2014, which means accession to ERM 2 exchange rates in 2012.
After the publication of data on inflation, the local currency slumped to roughly 4.3 against euro, nearing to all-time lows.
The annual inflation rate fell to 6.30% at the end of last year, from 6.74% in November, according to an INS report, the level being below analysts’ estimates, as the decline of sales has lowered the price of non-food products in December 2008.
In lipsa unui acord scris din partea InternetCorp, puteti prelua maxim 500 de caractere din acest articol daca precizati sursa si daca inserati vizibil linkul articolului 2008 inflation rate falls short of expectations, to 6.30%.