BNR head Isarescu: Salary increases in Romania are unavoidable

The salaries’ increases are unavoidable and the work force mobility contributes to this, but the hickes have to be made in a reasonable manner, says the governor of the National Bank of Romania, Mugur Isarescu.

„We monitor them (the increases – e.n.). Several quarters ago we said that taking into account the migration of the work force, we presented in front of you also the the last report on inflation and an indicator, we named it the indicator regarding the tension of the labor force market. It’s a lack of work force in several sectors. As a result, what we said and repeat now is that the salaries’ increases are unavoidable, but we have to keep them under control, correlated with several indicators…productivity is one of them, I mentioned it, it’s part of what’s called macroeconomics and financial macro-stability. There are valuable assets. Romania obtained them with big sacrifices,” said Isarescu in a conference of Wednesday.

He added that he doesn’t this that the monetary policy can balance or counterbalance weaknesses in other areas, and if does, it won’t be on an optimum manner.

„We don’t have weak solutions regarding the economy and productivity. On the contrary, the evolutions are positive. We don’t have yet a macroeconomic situation with unavoidable risks. The risks exist, they are in growth, but can be avoided. What we need now is to keep the god measure of things. (…) We got rid of some major risks. Last year the high risks were in banking law field. They are now significantly diminished,” said Isarescu.