Romanian Central Bank Rate Cut
January 18, 2021
The National Bank of Romania cut its key interest rate by 25 basis points to 1.25%. This reduction augments the full percentage point of cuts last year (50 bps in March and 25 bps each in May and August) and takes the rate level to its lowest point in the 21st century. A released statement notes that inflation remains below the 1.5-3.5% target midpoint and asserts that this latest “calibration of the monetary policy conduct is likely to provide an underpinning to the recovery of economic activity over the projection horizon with a view to bringing and strengthening over the medium term the annual inflation rate in line with the 2.5 percent ±1 percentage point inflation target, while safeguarding financial stability.” Last year’s decision to dispense with a prearranged schedule of policy reviews and to make adjustments on an as-needed basis remains in effect.
Copyright 2021, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: National Bank of Romania
ShareThis
