National Bank of Romania

National Bank of Romania Interest Stays Unchanged as Expected

March 28, 2013

Romania’s benchmark interest rate has been at 5.25% since four 25-basis point cuts spaced tightly between November 2011 and March 2012.  Officials would like to ease further but can’t because of above-target CPI inflation.  The target is 1.5 – 3.5%, whereas consumer prices rose by 5.65% in the twelve months to February.  Officials are counting […] More

National Bank of Romania

February 5, 2013

Romania’s monetary policy rate has not been changed since a 25-basis point cut to 5.25% in late March 2012, which culminated a sequence of four such moves that began in November 2011.  Earlier, five reductions totaling 225 bps were implemented in 2009, and another four moves totaling 175 bps were done in 2010.  The current […] More

National Bank of Romania Keeps Key Interest Rate at 5.25%

January 7, 2013

The NBR Policy Board did not change the monetary policy rate, which has been at 5.25% since March 29, 2012 when the last of four 25-basis point cuts over a 5-month span was announced.  Nine earlier reductions in 2009-10 totaled 400 bps.  A statement from bank officials emphasized the need for prudence in light of […] More

National Bank of Romania

November 2, 2012

In this context and with a view to efficiently anchoring inflation expectations, the NBR Board has decided to keep the monetary policy rate unchanged at 5.25 percent per annum, to ensure a firm liquidity management in the banking system and to maintain the existing levels of minimum reserve requirement ratios on both leu- and foreign […] More

Last Jobs Report Before Election Day

November 2, 2012

U.S. stocks rallied yesterday in response to a slew of better-than-forecast economic statistics — the ISM manufacturing survey, consumer confidence, the ADP and jobless claims.  Asian share prices picked up that tone, climbing Friday by 1.3% in Hong Kong, 1.2% in Japan, 1.1% in South Korea, 0.7% in Thailand, 0.5% in Singapore and 0.4% in […] More

Romanian Monetary Policy

September 27, 2012

Policymakers at the National Bank of Romania left their main interest rate at 5.25% in spite of a significantly greater on-year 3.9% rise of consumer prices because The CPI spike should recede given Romania’s sizable negative output gap, The CPI spike does not reflect an underlying deterioration but rather supply-side food shocks and an adverse […] More

Romanian Monetary Policy Left Unchanged This Month

August 2, 2012

Officials at the National Bank of Romania cut their policy interest rate four times by 25 basis points each between November 2011 and March 2012 but have made no further subsequent adjustment.  The rate level remains 5.25% after this week’s meeting, and it represents a cyclical low.  Five cuts totaling 225 bps were implemented in […] More

National Bank of Romania

May 2, 2012

Monetary authorities opted for prudence in the face of domestic policy uncertainty, a more vulnerable leu exchange rate, and general European debt uncertainties.  They elected to keep the benchmark interest rate steady at 5.25% rather than implement a fifth straight cut of 25 basis points even though CPI inflation eased further in the first quarter.  […] More

National Bank of Romania Implements Another Rate Reduction

February 2, 2012

Romanian monetary authorities implemented a twelfth interest rate cut as a majority of forecasters expected, reducing the main policy rate by 25 basis points to a cyclical low for the move of 5.5%.  The prior two 25-bp cuts were announced in November and January.  There were also five reductions totaling 225 basis points in 2009 […] More

A Second Romanian Interest Rate Cut

January 5, 2012

The National Bank of Romania Board members have sliced the monetary policy reference rate to 5.75% from 6.0% but left reserve requirements unchanged.  This second reduction following a similar 25-basis point drop on November 2, 2011 has been justified as a prudent response to lower CPI inflation and negative implications for growth and financial market […] More