The implementation, even partial, of the tax relaxation and wage increase measures, which have been recently adopted by the Parliament, will lead to an overheating of the economy.

These measures will also have adverse effects on the costs of external financing and on the behaviour of the Romanian currency exchange rate, Romania’s National Bank board members think, according to the minutes of last week’s monetary policy meeting, reports local Agerpres.

The board members agreed that the uncertainties regarding the construction of public budget for 2017 are extremely significant.

The BNR board unanimously decided, last week, to keep the monetary policy rate at 1.75%.

editor@romania-insider.com