National Bank of Romania

April 4, 2018

Following back-to-back quarter percentage point hikes in Romania’s monetary policy rate, now 2.25%, during January and February, central bank officials left the rate unchanged at today’s review. The 1.4 percentage point acceleration of Romanian CPI inflation between December and February had been along lines that officials had anticipated.

The latest assessments reconfirm the outlook for the annual inflation rate to pick up further and level off thereafter above the variation band of the target over the very short time horizon, in line with the medium-term forecast in February 2018, which indicates the return of inflation to the upper bound of the variation band towards the end of this year.

Amid robust economic growth, officials also left the 1.25% deposit rate and 3.25% lending facility rate unchanged and made no modification to reserve requirements. They consider monetary policy current configured in a way that ought to preserve medium-term price stability. The next quarterly inflation report will be unveiled on May 7.

Copyright 2018, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



Comments are closed.