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Even with a EU high inflation rate of 8%, the central bank kept its benchmark interest rate unchanged...at 6.25%...for the 12th consecutive month.
“The message of the central bank is that they will keep the interest rate unchanged for the year as they continue to search room for policy easing,” said ING economist Nicolaie-Alexandru Chidesciuc. “I think it’s the wrong message and the bank is underestimating the impact of the price increases. Keeping monetary policy relaxed now fuels higher than anticipated inflation in 2012 and 2013.”
Last year, the government did raise its VAT by five percentage points to 24%.
