Isarescu asks ZF to stop criticising National Bank’s policy

National Bank Governor Mugur Isarescu has asked ZF to stop criticising the policy of the central bank, explaining that it had always had to offset the procyclical effects of the fiscal and wage policy over the last few years.

“I would like to ask you to ask Mr. Pislaru to temper his writing, make a personal request to him and until he understands it, he should stop his virulent writing about the fact that we have to do this year what we did not last year,” Governor Mugur Isarescu said from the NBR rostrum. Many bankers and analysts believe that the central bank should have cut the interest rate faster to prevent the significant contraction of the economy, but the NBR preferred to focus on reducing the volatility of the exchange rate. NBR officials had dismissed the idea of a severe contraction in Romania’s economy until last summer, and the interest rate was cut in cautious steps. Answering a question asked by ZF about the effectiveness of the arrangement signed with the International Monetary Fund, mentioned during yesterday’s speech, given that the economy remains in recession, Isarescu said the goal had only been partially achieved.

“We avoided the crisis, which would have seen the euro go to five or six RON, as some people wanted it,” the governor said, explaining the purpose of the foreign loan agreement, admitting that recession could not be avoided.