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: “the situation in Greece, uncertainty surrounding Romania’s agreements with international institutions and the divergence between the monetary policy stances of major central banks worldwide, call for a prudent reconsideration of the monetary policy cycle.”
Altogether, the policy rate has fallen 850 basis points since end-2008 when such was at 10.25%. Officials also left reserve requirements unchanged after today’s meeting.
Copyright 2015, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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