The central bank also revised the inflation forecast for 2016 to 1.1% from 0.7% envisioned back in August.
Isarescu said annual inflation in Romania is expected to remain in negative territory until May 2016 and return to positive territory by the end of 2016, when it is seen below 1.5%.
The inflation rates is expected to re-enter the central bank’s target band of 2.5% plus/minus one percentage point in 2017.
“Consumers and entrepreneurs don’t see deflation in Romania yet, even though consumer prices have declined. The negative consumer price index is due to a tax cut,” the central bank governor said.
Romania lowered the value-added tax on food items from 24% to 9% in June and will lower its standard VAT rate to 20% as of 2016.