He said the market has excess liquidity of EUR3 billion.
The central bank sees inflation at 1.6% this year and 3.1% in 2018.
AT Monday’s rate meeting, the central bank kept the benchmark interest rate unchanged at a record low 1.75% a year, a level unchanged since May 2015. It also kept minimum reserve requirements on foreign currency liabilities and for leu deposits unchanged at 8%.
“Inflation rises to 2%, the key rate rises to 2%. The central bank will not raise its benchmark rate before inflation picks up. The problem is nominal interest on loans is very low. There is EUR3 billion excess liquidity on the market. There are more deposits than loans. A rise in inflation is inevitable,” said Isarescu.