National Bank of Romania

April 5, 2017

Romania’s monetary policy rate has been 1.75% since a 25-basis point cut in May 2015. This month was saw the fifteenth consecutive Board meeting without an interest rate change. From April 2014 to the May 2015 cut, the interest rate had been halved from 3.5% to 1.75%. Today’s released statement notes that inflation finally moved above zero in January and doubled to 0.2% in February, with a core underlying 12-month increase then of 0.9%. By their own admission, the stance is stimulative, but that’s appropriate given that inflation is still well below target. Only a slightly upward inflation path is anticipated. GDP grew 4.8% last year, doubling the current account-to-GDP ratio to 2.3%.

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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