BUCHAREST Feb 4 Volatile capital inflows are a
risk to Romania's inflation outlook, central bank Governor Mugur
Isarescu said on Tuesday, after the bank cut rates to a record
low of 3.5 percent.
The bank cut its benchmark rate by 25 basis points, which
will probably be the last cut this year, defying pressure on
emerging market policymakers to bolster currencies against
"Risks to the new (inflation) outlook are tied to the
volatility of capital flows, given investors' changeable risk
appetite and changes in exposure to emerging economies,"
Isarescu told a news conference.
Monetary policy will be focused on Romania's inflation rate,
Isarescu said, adding that the current rates were
Consumer prices fell to an all-time low of 1.6 percent in
December, within the central bank's 1.5-3.5 percent target,
helped by an exceptional harvest.
(Reporting by Luiza Ilie; writing by Radu Marinas; editing by