National Bank of Romania
November 5, 2015
Romania’s record low 1.75% monetary policy rate was not changed at the last scheduled meeting of 2015. The rate had been at 3.25% when the Board met in September 2014 and authorized a cut of 25 basis points. Five more such reductions followed over the ensuing eight months to the present level. The Board released a statement today stressing high uncertainty surrounding both Romania’s fiscal and external environments. The country’s prime minister just resigned and a previous reduction of value added taxes and the globally low price situation is expected to keep inflation below zero over the coming three quarters and under target until the start of 2017. At the meeting officials also agreed “to pursue an adequate liquidity management in the banking system and to maintain the existing levels of minimum reserve requirement ratios on both leu- and foreign currency-denominated liabilities of credit institutions.”
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