Bolojan Highlights Decreasing Trend in Romania’s Loan Interest Rates
Premier Discusses Impact of Interest Rates on Economic Stability
Romania’s Premier Addresses Concerns on Rising Interest Rates
The Romanian Premier has addressed concerns regarding the rising interest rates, attributing them to the current market realities. He explained that a nation’s interest rates are influenced by its level of trust on international markets, fiscal management, and economic health. “Countries with higher trust levels and better-managed budgets experience lower interest rates,” he remarked. He further explained that inflation also plays a crucial role in determining these rates.
Economic Measures and Their Effects
The Premier acknowledged that recent economic measures have led to a slight economic contraction. He pointed out that changes such as increased VAT and reduced public sector salaries have contributed to this contraction. “These actions have a deconstraining effect, which was unavoidable due to the lack of magical solutions without such repercussions,” he added.
Projections for Economic Improvement
Looking forward, the Premier expressed optimism that Romania’s economy would stabilize if government spending is curtailed in the coming months. “This will likely result in a notable decrease in inflation by mid-next year, leading to stabilization,” he predicted.
Preliminary indications of this projected improvement are already visible. The interest rates for Romania’s borrowed credit are on a downward trend, a significant shift noted from public data provided by the Ministry of Finance.
