Isarescu said the widening of the budget deficit is not an exception but rather the norm in the European Union and a public debt to GDP ratio of up to 60% shouldn’t pose any major problems.
Romania’s government put a cap on public debt at 55% of GDP for this year but the debt-to-GDP ratio already hit 50% at the end of April.
He added the time of low interests is expected to soon come to an end.
The central bank board decided to keep the benchmark interest rate at a record low of 1.25% a year in its meeting on Wednesday.