In its board meeting Thursday, the central bank board examined and approved the February 2019 Inflation Report, which incorporates the most recent data and information available.
Uncertainties and risks related to the inflation outlook stem from the new set of fiscal and budgetary measures effective 1 January 2019, as well as from the still pending draft budget and hence from the future fiscal and income policy stance, the central bank said.
Also important are the uncertainties surrounding the pace of euro area and global economic growth, the international oil price developments, the monetary policy stances of the ECB and of central banks in the region.
The inflation rate continued to go down in December 2018 to 3.27% from 3.43% in November, moving deeper into the variation band of the flat target. Thus, the bank said it has fulfilled its objective of maintaining price stability over the medium term amid a carefully calibrated monetary policy stance.
Romania’s central bank targets inflation at 1.5%-3.5%.