National Bank of Romania

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

National Bank of Romania

September 30, 2014

Analysts were not surprised to learn of another 25-basis point cut in Romania’s monetary policy rate to a further record low of 3.0%, effective October 1.  This was the fourth reduction of 2014, all by 25 basis points.  The rate earlier had been cut from a pre-Great Recession peak of 10.25% to 8.0% by end-2009, […] More

National Bank of Romania Keeps Status Quo

May 6, 2014

Romania’s monetary policy rate has been at 3.5% since February.  From a peak of 10.25% at end-2008 it fell to 3.5% in increments of 225 basis points during 2009, 175 bps in 2010, 25 bps in 2011, 75 bps in 2012 and 175 bps since mid-2013 including cuts of 25 bps in the first two […] More

National Bank of Romania Confirms Paused Policy

March 28, 2014

Romania’s monetary policy rate had been reduced by a total of 175 basis points since mid-2013 including a cut of 25 bps in February when officials hinted that easing might then be paused.  This indeed is the case.  After this month’s meeting, officials retained the record low 3.5% interest rate and did not change reserve […] More