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OUTLOOK 2021 Lithuania
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OUTLOOK 2021 Hungary
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OUTLOOK 2021 Slovakia
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OUTLOOK 2021 Romania
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Question: Hello - did you see Isarescu commenting on a potential ideal gap between the policy rate and inflation during the Q&A pls?
indeed Isarescu touched this topic. But it was about the gap between inflation and money market interest rates [not policy interest rate].
What he clearly said, was that no one should expect the interest rates to rise in line with inflation soon [this would be bankers' wishful thinking, he implied between the lines]. He also mentioned that the [nearly] 2pp between the interest rates and inflation in Europe [euro area] is same in Romania [more or less, with the gap wider in Romania judging by numbers] at this moment. He did not say whether the gap will remain the same, but he implied that the developments in Romania should [and he stressed, in his opinion] converge to the developments in Europe. Both the interest rates and inflation in Romania should converge to same levels as in Europe , he also added. Isarescu also mentioned debates among monetary board's members about the process of normalisation of the monetary policy in Europe -- by normalisation meaning the return to real positive interest rates, sterilisation and monetary transmission mechanism as we know it. It is a process that impacts Romania significantly, he stated, and its dynamics is still unclear. [such normalisation would compress the 2pp gap and in fact, eventually, turn it negative -- our comments here ] In conclusion, the 2pp gap should be regarded as a dynamic target -- likely to follow the developments in the euro area. Because otherwise, combined with the 3.5% y/y yearend conflagration target it would result in 1.5% interest rates at the end of the year [which is unrealistic].
The bottom line: Isarescu's comments were not about the policy rate, but about the interest rates.
whole speech here https://www.youtube.com/watch?v=ttY05QnX034 with the para mentioned starting min45
The Asian Development Bank (ADB) last week appointed a Kazakh national, Eugene Zhukov, as director general of its Central and West Asia Regional Department.
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Enguri hydropower plant (HPP), the largest electricity producer of Georgia and also the power supplier to the Russian-occupied region of Abkhazia, will be closed for repairs for three months from ...
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The Budapest-based International Investment Bank (IIB) has announced the private placement of a €30mn 20-year bond with a German insurance company to kickstart the year under its MTN Programme, the ...
Iranian Foreign Minister Mohammad Javad Zarif on January 17 lashed out at claims from French counterpart Jean-Yves Le Drian made in an interview with the Journal du Dimanche that Iran is building up ...
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The European Investment Fund (EIF) and Raiffeisenbank Bulgaria signed a €100mn agreement for guarantees under the JEREMIE programme for financing of local small and medium-sized enterprises, the ...
VEB Ventures, the subsidiary of Russian development bank VEB.RF (former VneshEkonomBank), has invested RUB500mn ($7mn) in the cargo flow digitisation start-up Deliver, Kommersant daily ...
Workers and inhabitants of Turkmenistan’s city of Turkmenabat are being forced to take part in midnight cleaning sprees in the cold, Hronikatm reported on January 14.
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Concern is mounting over Turkey’s ‘wealthless sovereign wealth fund’, which is exempted from public auditing.
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Serbia’s President Aleksandar Vucic was fined €1,700 by the Belgrade First Basic Court for calling far-right opposition leader Bosko Obradovic a fascist and thief, Obradovic announced on Twitter. ...
The European Bank for Reconstruction and Development (EBRD) invested a record €11bn in 411 projects in 2020, a 10% year-on-year increase, stepping up investments as the 38 economies where it ...
Wizz Air sold €500mn worth of three-year bonds at an interest rate of just 1.35% on January 13 after receiving more than €2bn of orders from investors, ...
The European Bank for Reconstruction and Development (EBRD) is to support small and medium sized enterprises (SMEs) in Kazakhstan by sharing up to 50% of risk on a ...
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