First Deputy Governor of the NBR Leonardo Badea: Prolonged uncertainty generates ambiguity in the economy

The current period is marked by uncertainty and ambiguity, while economic developments are becoming increasingly difficult to anticipate, said Leonardo Badea, First Deputy Governor of the National Bank of Romania, at the launch of the second edition of the Newmoney.ro–INSCOP Economic Sentiment Index.

According to the BNR official, uncertainty is difficult to model, and when it persists, it turns into ambiguity. “We are at a moment of ambiguity. This is where we are—not only in Romania, but globally,” Badea said.

He explained that, in this context, authorities and economists must use all available tools to understand how people and countries respond. Measuring public sentiment thus becomes essential for making appropriate decisions.

“It is very important to understand very well what the perception is across society,” the BNR First Deputy Governor said. In his view, economic sentiment has a dual role: it is both a cause of economic decisions and a signal for authorities and economic agents.

Badea stressed that people and companies do not always make decisions based exclusively on objective considerations. Perceptions, inertia and the environment in which they live can influence purchasing decisions and economic behavior.

In the BNR official’s view, confidence in the future and optimism are key elements in overcoming the period of ambiguity. His statements come as 86.1% of Romanians estimate that prices will rise over the next six months.