National Bank of Romania Keeps Interest Rate at 1.75%
July 3, 2017
Given the current assessments, as well as the emergence of new sources of uncertainty, the Board of the National Bank of Romania decided to keep unchanged the monetary policy rate at 1.75 percent per annum, to further pursue 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.
Romania’s monetary policy rate has been 1.75% since May 2015 when the last of seven reductions dating back to August 2014 was implemented. These moves halved the rate. A statement released today by the NBR Board notes that total and core inflation rose in May but remains below the medium-term target of 2.5%. The bias on inflation now seems tilted toward a further acceleration, and it would seem likeliest that the direction of the next interest rate adjustment will be upward.
Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: National Bank of Romania
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