Why infla Is Trending Today?

Guvernatorul Mugur Isărescu recently expressed concerns about the "toxic dance" of inflation, casting doubts on the economic situation. In a statement, he discussed the current inflation rates, Gross Domestic Product (GDP), and the overall economic evolution. When asked about Romania's decision not to adopt the euro, guvernatorul provided explanations for the country's stance.

Mugur Isărescu, the governor of the National Bank of Romania (BNR), has stated that the bank supports fiscal and budgetary corrections, but they should be realistic and ensure social peace and political stability. He noted that reducing expenses is more challenging than increasing taxes. He also mentioned that the bank does not expect a decrease in monetary policy interest rates this year, but market interest rates, such as ROBOR, have been decreasing and are heading towards 6.5%. If the situation improves gradually, the inflation rate could potentially improve. In an interview, Isărescu explained that Romania's failure to adopt the euro was a political decision. The BNR has significantly revised its inflation forecast for 2022 from 4.6% to 8.8%, and Isărescu warned that inflation could reach over 9% by the end of the year, with a peak of 9.6% in September. He believes that avoiding a recession is possible through the faster absorption of European funds. However, in a recent statement, Isărescu acknowledged that Romania is not yet in a recession but admitted the risk exists. He also expressed concerns about the increasing inflation rate, which reached 7.8% in July, and the potential impact on the economy and consumers. The governor of California has initiated a legal process against former US President Donald Trump, citing his decision to deploy the National Guard in Los Angeles.