Bankers believe new c-bank board might favour currency appreciation. [IntelliNews - Weekly Reports]
(IntelliNews - Weekly Reports Via Acquire Media NewsEdge) The new board of directors at Romania's central bank might favour stronger currency rather than low interest rates, HotNews online news service reported quoting an ING Romania report.
Even though there is no immediate impact on the financial markets, the monetary policy could focus rather on a stronger local currency in the longer term, the report reads.
Such a policy would be aimed at helping the government, given the fact that the ruling party had replaced deputy governor Cristian Popa with its budget minister Liviu Voinea – furthermore accompanied by state secretary Gheorghe Gherghina.
ING experts also express concerns related to the future independence of the central bank. Such views are shared by other bank experts as well, the source says.
CONTEXT. Earlier in May, bank experts expressed expectations for a flat monetary policy [3.5%] by the end of the year at least and possibly by the end of 2015. The central bank has just completed the interest rate cut cycle, deputy governor Bogdan Olteanu said earlier in the year. Experts also believe that the central bank would cut the minimum reserve requirements by some 2pps from the current levels by the end of 2015.
In respect to the exchange rate – the local currency has hovered within a rather narrow band during the past couple of years. In real terms, versus the euro, it has gained ground during the past half a year – but is close to where it was one year earlier, or before the start of the credit crunch in the autumn of 2008.
(c) 2014 Emerging Markets Direct Media Holdings LLC Provided by SyndiGate Media Inc. (Syndigate.info).
[ Back To TMCnet.com's Homepage ]