Selected Articles from IntelliNews Pro IntelliNews Pro

About IntelliNews Pro

IntelliNews Pro has been a trusted resource since 1999 for emerging market business and finance professionals engaged in the markets of Eastern Europe, Eurasia, MENA region and Africa. Users have direct access to locally based analysts to answer questions or gain insight into those markets.

Ask the Analyst from IntelliNews Pro

Romania’s central bank hikes monetary policy rate as expected

Question: Hello - did you see Isarescu commenting on a potential ideal gap between the policy rate and inflation during the Q&A pls?

Answers: Hello, 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  

Show Full Answer   More from Ask the Analyst

Upcoming local elections in Turkey neither free nor fair says EU-Turkey Civic Commission

March 18, 2024

The upcoming March 31 local elections in Turkey will be neither free nor fair, according to the EU-Turkey Civic Commission (EUTCC), a non-governmental organisation (NGO) backed by Kurdish groups. ... ...

Zimbabwe’s VFEX to launch mineral commodities exchange in March

March 18, 2024

Zimbabwe is set to launch a mineral commodities exchange on the US dollar-denominated Victoria Falls Stock Exchange (VFEX) this month as part of a broader push to attract investors to the country’s ...

UAE’s Masdar, Uzbekhydroenergo partner up to evaluate potential of national hydro power storage

March 15, 2024

United Arab Emirates renewable energy company Masdar has partnered with Uzbekhydroenergo to evaluate the potential of national hydroelectric power storage projects. Masdar and Uzbekhydroenergo, a ...

Sasol, Topsoe form a sustainable aviation fuel (SAF) joint venture Zaffra

March 15, 2024

South African chemicals and energy company Sasol and Danish carbon emission reduction technology company Topsoe have launched a joint venture, called Zaffra, which will focus on developing and ...

Profit of Russia’s Sberbank stable in February at $1.3bn

March 15, 2024

Russia’s largest bank state-controlled Sber (Sberbank) posted RUB120bn ($1.3bn) for February 2024 under Russian Accounting Standards (RAS), up by 5% month on month. For 2M24 Sber’s bottom line of ...

Uzbekistan's major taxpayers pay UZS 17 trillion in 2M24

March 14, 2024

Uzbekistan's major taxpayers paid approximately Uzbekistani som (UZS) 17 trillion ($1.35bn) to the state in the first two months of this year, according to official data published by the economy and ...

Uzbekistan's central bank sticks with benchmark rate of 14%

March 14, 2024

Uzbekistan's central bank on March 14 decided to stick with its key interest rate of 14.0%. The regulator forecast annual inflation would be 8-9% by the end of this year compared to its inflation ...

Tashkent proposes JV to take charge of construction of China-Kyrgyzstan-Uzbekistan railway

March 13, 2024

Uzbekistan has proposed establishing a joint venture that would be responsible for the construction and management of the China-Kyrgyzstan-Uzbekistan (CKU) railway, Railway Supply reported on March ...

Turkish footwear manufacturers step up investments in Uzbekistan’s leather and footwear industries

March 13, 2024

Turkish footwear manufacturers are stepping up their investments in Uzbekistan’s leather and footwear industries, according to local reports. A $1mn investment in the manufacture of leather, ...

VP of Kremlin-linked Rossiya Bank arrested

March 13, 2024

The Vice President of Rossiya Bank Igor Andreev has been arrested in a bribery case on March 5 while receiving a bribe of RUB2mn, according to RBC business portal. As followed by bne ...

Erste Bank sees modest rebound for Hungary in 2024

March 13, 2024

Hungary’s economic rebound should be much slower than earlier anticipated in 2024 and GDP is set to expand 2.0% after a 0.9% contraction in 2023, Erste Bank said in a note. Officially, the ...

Ethiopia prepares to launch securities exchange with Ethio Telecom rumoured as first offering

March 12, 2024

Ethiopia, long absent from the roster of African nations with a securities exchange, is poised to make a significant leap forward as it prepares to unveil its capital markets platform in the third ...

Morocco allocates 10,000 sq km to green hydrogen projects

March 12, 2024

The Moroccan government plans to allocate 10,000 square kilometres to green hydrogen projects as it continues its steps towards energy transition, according to a statement from the cabinet on March ...

Ameriabank clinches fourth consecutive title as Armenia's best bank in sustainable financing

March 12, 2024

Ameriabank has maintained its position as Armenia's leading financial institution for sustainable financing, winning the  title for the fourth year in a row. The recognition is due to the ...

Uzbekistan Roadmap for Sustainable Investment Policy Reforms launched

March 11, 2024

An Uzbekistan Roadmap for Sustainable Investment Policy Reforms, or RSIPR, funded by the European Union and the Asian Development Bank (ADB), was launched on March 6 in Tashkent. The initiative ...

Uzbekistan and China set sights on $20bn trade target

March 11, 2024

Uzbekistan and China are targeting annual trade of $20bn, with the latter already the biggest trade partner of the former, according to Obid Khakimov, director of Uzbekistan’s Center for Economic ...

Ghana looks to diversify economy by refining its own gold, iron ore and other minerals

March 11, 2024

Ghana, Africa’s biggest gold producer and one of the continent’s most mineral-rich countries, aims to become a lot more involved ...

Foreign banks in Dubai to face 20% tax on income

March 11, 2024

Foreign banks operating in Dubai will face a new 20% tax on their annual taxable income, according to a law issued by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the ...

Russian St Petersburg Bank posts $0.5bn profit in 2023

March 10, 2024

Russian Saint Petersburg bank posted a net profit of RUB10.4bn for 4Q23 under IFRS, making 22% quarter on quarter growth and a return on equity (ROE) of 24%. Renaissance Capital analysts estimated ...

Bank Melli Iran allowed to resume Iraq operations

March 9, 2024

Bank Melli Iran (BMI) has been given the go-ahead to resume its operations in Iraq by the Central Bank of Iraq, as reported by IBENA on February 9. This decision comes after a temporary suspension of ...

Dismiss