Iohannis after meeting with National Bank leadership: BNR’s independence is essential in monetary policy decisions

Anca Alexe 25/04/2018 | 16:54

Romanian president Klaus Iohannis met with the National Bank governor Mugur Isarescu and first vice-governor Florin Georgescu today as a result of the need for mediation of disputes between the government and BNR regarding the risks Romania is currently facing when it comes to inflation and the coordination of economic policy.

The statement by the Presidency shows that the president and the BNR leaders analysed the current macroeconomic situation, and the president underlined the fact that the National Bank’s independence is essential in monetary policy decisions, as this is a fundamental condition for an EU member state.

Klaus Iohannis also said that the National Bank needs to follow its fundamental objective of ensuring the stability of prices, in order for Romanians not to see a decrease of their purchasing power.

The BNR governor presented the main factors that led to the rise in prices, showing that the significant influences are caused by components outside the monetary policy’s control.

Regarding the issue of coordinating economic policies, the president believes that it should not be interpreted as to mean that the policies of some authorities should be subordinate to the objectives of others, but that the totality of economic policies should ensure the stability and predictability of the macroeconomic framework.

Therefore, the presidency states, both the government and the National Bank need to avoid competitive approaches, so that the institutional cooperation can be efficient, and demonstrate balance and responsibility for the country’s economic interests.

At the end of the meeting, the president expressed his hope that the government and the National Bank will discuss over the following period and improve their institutional dialogue and cooperation.

 

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