National Bank of Romania

May 15, 2019

Board members of the National Bank of Romania did not raise their monetary policy rate further despite enumerating several concerns. Inflation has risen to 4.1%, and officials project that such will “remain above the variation band of the target during the next three quarters and thereafter return to and stay in the upper half of the band until the end of the forecast horizon… Significant uncertainties and risks stem from the fiscal and income policy stance and labor market conditions. The evolution of the current account deficit remains a matter of concern as well.” The central bank’s interest rate was last increased a year ago in a 25 basis point move to 2.5%. It also had been raised a quarter percentage point in the first meeting of 2018. Today’s Board statement mentions several other considerations that influenced their decision such as “uncertainties about the pace of euro area and global economic growth, the international oil price developments, the monetary policy stances of the ECB and of the Fed, as well as of central banks in the region.”

Copyright 2019, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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