Latest news with #MugurIsarescu
Reuters
20-05-2025
- Business
- Reuters
Romanian leu falls back as central bank keeps rate cut in view
WARSAW, May 20 (Reuters) - The Romanian leu pulled back on Tuesday, halting a post-election rally as the central bank said a rate cut could still come later this year. By 0945 GMT the Romanian leu had dropped 0.9% against the euro to 5.0844, giving back most of the gains it clawed back after Sunday's surprise presidential election victory of centrist Nicusor Dan over a hard-right rival. Romanian central bank Governor Mugur Isarescu on Tuesday, speaking for the first time since the leu fell to record lows in the election run-up, said the bank could discuss interest rate moves once the perception of the country's markets improves and capital that left returns. Conditions were being created for a rate cut in the second half of 2025, he said, with inflation seen coming down. The leu retreated with the comments - while domestic bond yields were a touch lower - highlighting market fragility in Romania where the next president still must find a new prime minister and install a government that can tackle Europe's biggest fiscal deficit. "For sure, markets were pleased by the win of centrist candidate Dan but investors are very well aware of the fact that a lot of has to be done in terms of correction of notorious imbalances," Generali Investments CEE analyst Jakub Kratky said. "That said, any news like a dovish comment or reminder made by Isarescu could change the tide pretty swiftly." Markets had fallen earlier in May when nationalist George Simion had a strong first-round showing, raising worry over shifting policies that would add fiscal pressure and put Romania's rating at risk. The central bank intervened with "large sums" the day after the first round, according to Isarescu, but could not protect the leu for falling past 5 per euro for the first time ever. Isarescu said the market had "underestimated" how much central bank had spent to defend the leu, which shed as much as 3% and is still down around 2% since before the election. In Poland, which held the first round of its presidential election on Sunday, the zloty edged 0.1% higher to 4.2440 per euro, remaining within the range it has largely been trading in since mid-May. Sunday's voting result pits a liberal candidate from Poland's main ruling party (KO) against a conservative contender backed by the former ruling party (PiS) in a run-off on June 1, which will keep markets on edge. In Hungary, the forint eased 0.2% to 402.40 per euro, pulling back from its strongest standing since early April, hit on Monday, and returning to the level it ended the previous week. Elsewhere the Czech crown was flat at 24.9030 per euro.
Yahoo
17-02-2025
- Business
- Yahoo
Romania Ready to Handle Capital Outflows on Post-Election Risks, Isarescu Says
(Bloomberg) -- Romania is ready to deal with potential post-election capital outflows should a far-right candidate win the presidential elections in May, according to central bank Governor Mugur Isarescu. Progressive Portland Plots a Comeback Why Barcelona Bought the Building That Symbolizes Its Housing Crisis Why American Mobility Ground to a Halt A Filmmaker's Surreal Journey Into His Own Private Winnipeg How to Build a Neurodiverse City Policymakers in Bucharest may consider more rate cuts in the second half of the year if inflation continues to ease, but uncertainties from internal political developments and trade tensions between the US and Europe significantly cloud the outlook, Isarescu told reporters in Bucharest on Monday. A trade war would not only boost inflation, but also trigger a recession in Europe, he said. 'We are already ready for potential capital outflows after the elections and not exactly outflows but existing capital lines not being renewed,' Isarescu said, without giving details about specific measures. The Undocumented Workers Who Helped Build Elon Musk's Texas Gigafactory The Unicorn Boom Is Over, and Startups Are Getting Desperate Japan Perfected 7-Eleven. Why Can't the US Get It Right? The NBA Has Fallen Into an Efficiency Trap How Silicon Valley Swung From Obama to Trump ©2025 Bloomberg L.P.
