Romania: “Aggressive Rate Cuts Likely”

Politics ♦ Published: October 12, 2013; 12:09 ♦ (Vindobona)

In view of the accelerating disinflation in Romania, Vienna-listed RBI (Raiffeisen Bank International) expects the monetary policy to be eased further.

Romania: “Aggressive Rate Cuts Likely” / Picture: © BNR National Bank of Romania

“Consumer prices dropped by 0.6% mom in September, more than we and the market had expected (-0.2% and 0.1% mom). The main factor behind the impressive decline was the cut in the VAT for bread and related products, which subtracted around -0.73 percentage points from the headline figure. Volatile food prices showed mixed dynamics with prices for fruits decreasing, as expected, by 2.3%…