National Bank of Romania

National Bank of Romania

January 7, 2016

Romania’s central bank Board left the monetary policy interest rate at 1.75%, a record low and the level since a cut last May.  The reserve requirement was lowered by two percentage points to 12.0%, and a released statement  Observed that inflation remains negative versus a 1.5-3.5% target. Projected that “the annual inflation rate will return […] More

National Bank of Romania

November 5, 2015

Romania’s record low 1.75% monetary policy rate was not changed at the last scheduled meeting of 2015.  The rate had been at 3.25% when the Board met in September 2014 and authorized a cut of 25 basis points.  Five more such reductions followed over the ensuing eight months to the present level.  The Board released […] More

National Bank of Romania

September 30, 2015

Romania’s monetary policy rate will remain at 1.75%.  Four 25-basis point cuts were undertaken this year by May 6 on top of 125 basis points of reduction last year.  CPI inflation was just 0.3% last month, well below target.  A released statement speaks of balancing the prospect of more disinflation in the near term with […] More

National Bank of Romania

August 4, 2015

Romania’s central bank benchmark interest rate of 1.75% was not cut despite a drop in inflation caused by recent fiscal changes including reduced value added tax.  Today’s statement explains, “the strengthening over the short term of the transitory disinflationary impact exerted by the aforementioned fiscal measures masks the build-up of medium-term inflationary pressures, given the […] More

National Bank of Romania

July 1, 2015

Romania’s policy interest rate, which had been cut four times in the first half of 2015 by 25 basis points each to a record low now of 1.75%, was not changed after the latest Board meeting.  While a released statement said officials expect inflation to run below the 1.5-3.5% target, other considerations argued for caution:  […] More

An Unexpected Interest Rate Cut in Romania

May 6, 2015

The National Bank of Romania’s monetary policy rate had been cut five times by 25 basis points each time in 2014, as well as by that amount in January, February and March of this year.  Analysts were not generally expecting today’s further accommodation that saw the main interest rate fall to 1.75% from 2.0%.  A […] More

National Bank of Romania

March 31, 2015

Romania’s central bank Board today cut its policy interest rate to 2.0% from 2.25%.  This was the third straight monthly reduction and the sixth such cut in the last eight months.  The rate at end-2008 was 10.25% but cut by 400 basis points in 2009-10, 100 bps in 2011-12, 125 bps in 2013, 125 bps […] More

National Bank of Romania Eases Further as Expected

February 4, 2015

The monetary policy rate was reduced to 2.25%, a record low, from 2.50% after this month’s Board meeting.  This was the second such cut of 2015 and follows cumulative reductions of 125 basis points in 2014, 125 bps in 2013, 75 bps in 2011, 175 bps in 2010 and 225 bps in 2009.  The expected […] More

National Bank of Romania Cuts Monetary Policy Rate

January 7, 2015

Romanian monetary officials released a statement after cutting the benchmark interest rate by another 25 basis points, justifying the move with a forecast of continuing sub-target CPI inflation.  The target is 1.5-3.5%, and the latest reading is 1.26%. Over the short term, the path of the annual inflation rate is expected to remain below the […] More

National Bank of Romania Eases Monetary Policy in Three Ways

November 4, 2014

A quarterly review of the outlook for inflation in which the forecast was cut sharply to 1.5% at end-2014 and 2.2% at end-2015, provided an opportunity for monetary officials to ease policy further.  In explaining the forecast change, a released statement calls attention to “the persistence of the negative output gap, the consolidation of inflation […] More

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