National Bank of Romania
March 31, 2016
Romania’s monetary policy rate was cut 125 basis points in the second half of 2013, another 125 basis points during 2014, and a full percentage point in four moves during the first five months of 2015. Those actions reduced the rate from 5.25% to its present level of 1.75%. Today’s statement kept 1.75%, but a subsequent press conference left the door open to a hike within a few months. Romania is projected to have negative CPI inflation until mid-2016, but inflation momentum, excluding special factors like a VAT cut, is higher, and “annual GDP growth rate remained relatively high in 2015 Q4 as well, hitting a post-crisis high of 3.7 percent in the year as a whole.”
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