National Bank of Romania’s Main Interest Rate Kept at 1.75%
August 4, 2016
Romania’s last four interest rate cuts totaling one percentage point were implemented during the first five months of 2015. Economic growth is performing well, exceeding 4.0% at an annual rate in the first quarter of 2016. However, inflation is still negative and expected to remain so until the end of this year “before returning inside the variation band of the target in the course of 2017 and standing below the mid-point of the target at year-end,” according to a statement from the National Bank of Romania released today. A number of domestic risks related to “fiscal and income policy stance, against the backdrop of the election year and the absence of agreements with the international financial institutions, along with adverse effects of changes to financial legislation” are cited in the statement.
Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: National Bank of Romania