Inflation in 2005 will not exceed the initial 8.1-8.3 percent projections, chief economist Valentin Lazea of Romania's Central Bank (BNR) told weekly Saptaman financiara in an interview carried in its latest issue. "Things will no longer be that clear in 2006 because disinflation will be hard to keep in check if demand keeps on going up uncontrollably," Lazea waned. According to the publication, targeting inflation is a main objective of BNR that becomes increasingly more a problem of the Government, trade unions and banks. According to Lazea, inflation resembles liquidity collected in a pool fed by four taps: administered prices, wage policy, the Government deficit as well as the credit and monetary policies. "This enumeration indicates that BNR only controls one of these taps. That is why it is important to be understood that continuing disinflation is a process requiring the efforts of all the players involved, that is the Government, trade unions and commercial banks," said Lazea.

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