Romanian Central Bank Rate Left at 6.25%
September 29, 2011
The National Bank of Romania decided again to retain all monetary policy settings as they were. This has been the approach of other east European central banks during the euro debt crisis, and in Romania’s case, the benchmark 6.25% interest rate has been at that level since a cut of 25 basis points in May 2010. The central bank implemented nine cuts between January 2009 and May 2010, amounting to 225 basis points in 2009 and another 175 bps in 2010. Inflation now exceeds target, but officials project such will slow to within their 2-4% prescribed range in 2012. Economic growth is weaker than 2%. Reserve requirements are at 15% for leu-denominated deposits and 20% on deposits in other currencies.
Copyright 2011, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: National Bank of Romania
ShareThis
