The world’s markets registered the most severe declines in years at the beginning of this week, but this is not the start of another market crisis, according to Romania’s central bank.

The main index on Wall-Street, the Dow Jones Industrial Average, dropped by 4.6% on Monday, its worst day in six years, sending ripple effects on Asian and European markets on Tuesday, and everyone started looking back at 2008, when the global financial crisis started. However, analysts are not expecting another crisis yet and say these are corrections after the market indices climbed to new records at the beginning of this year.

“There have been prophets who said this was the beginning of a new crisis. I say there are no signs of a few crisis. There’s no wind of recession, no increase in unemployment. Why would there be a crisis?” said Adrian Vasilescu, an advisor to Romania’s National Bank governor Mugur Isarescu, local Agerpres reported.

He said the corrections were likely linked to the change of the US central bank’s president, which may also bring changes in the Fed’s monetary policy.

As revenues have increased and unemployment has dropped to record lows in the US, inflationary pressures may determine the new Fed head to start increasing interest rates. Investors who anticipate this change of policy have started to sell their shares to protect their gains, according to Vasilescu.

The drops on international markets also impacted the Bucharest Stock Exchange, whose main index (BET) lost 2.1% on Tuesday.

editor@romania-insider.com