“We can’t afford forward guidance because we have too many factors influencing our decision,” he said when asked whether the central bank rules out key rate hikes this year and whether it plans to use other monetary policy instruments besides strict liquidity management.
“We need to calibrate monetary policy tools with care. We don’t ensure price stability by stifling economic growth,” said Isarescu.
The central bank on Wednesday kept its benchmark interest rate on hold at 2.5% a year, while tightening control over money market liquidity.
The rate has been kept unchanged since May 2018. Previously, the central bank raised the rate throughout 2018 after three years of keeping the rate at a record-low of 1.75%.