National Bank of Romania

Markets Unfazed So Far by Likelihood of a Big Republican Win in Today’s U.S. Midterm Election

November 8, 2022

The dollar strengthened overnight by 0.3% on a weighted basis. It went up 0.2% versus the Aussie dollar 0.3% against the euro, Swiss franc, Chinese yuan, New Zealand dollar and sterling and rose 0.7% relative to the Canadian dollar. There was also a 0.1% dip against the Japanese yen. The ten-year Treasury yield remains unchanged […] More

National Bank of Romania’s Policy Interest Rate Raised 75 Basis Points to 8-Year High of 3.75%

May 10, 2022

While Federal Reserve officials have been talking the talk of an expeditious tightening of monetary policy, many other central banks have been actually walking the walk. The National Bank of Romania is one of these. Today’s announced Romanian interest rate hike was the largest in a string of six increases since October. In all, the […] More

National Bank of Romania’s Key Interest Rate Restored to Pre-Pandemic Level

February 9, 2022

A 50-basis point increase in the National Bank of Romania‘s key interest rate to 2.5% restores such to its pre-pandemic level. The rate had been cut by fll percentage point in 202o and by an additional 25 basis points in January 2021. The low of 1.25% had been maintained for nine months, and today’s action […] More

Lessening Risk Aversion

February 9, 2022

The recent sell-off in bonds has taken a step back, and that has encouraged bottom-feeding in equities. Nonetheless, markets have come a long way in the first five weeks of 2022. The 30 year U.S. fixed mortgage rate rose another five basis points last week and, at 3.83%, was 56 basis points above its end-2021 […] More

A More Gradual Approach to Rate Normalization in Romania than at Other Eastern European Central Bankers

January 10, 2022

Romania’s policy interest rate was raised only 25 basis points after the first monetary policy review of 2022 even though total CPI inflation of 7.8% is more than twice the 3.5% target ceiling, core inflation has also risen, and both measures are projected to crest further in the short run. Today’s increase to 2.0% follows […] More

More Signs of Intensifying Inflation and Another Central Bank Rate Hike

November 10, 2021

The dollar didn’t move much right after U.S. CPI data were released but had already advanced by 0.0.4% overnight on a weighted basis before then to within 0.2% of its 52-week high. Dollar gains amounted to 0.5% against the kiwi and sterling, 0.4% relative to the euro and yen, and 0.3% vis-a-vis the Swiss franc […] More

January’s Romanian Central Bank Rate Cut Reversed at this Month’s Review

October 5, 2021

The National Bank of Romania‘s has raised its monetary policy rate by 25 basis points to 1.5%. At the onset of the pandemic, the rate had been slashed during 2020 by 50 basis points in March, 25 bps in May and 25 bps in August. The easing culminated with a fourth cut in January to […] More

Dollar Strengthening after Solid U.S. Employment Report

August 6, 2021

The DXY weighted dollar index advanced 0.4% overnight but, at 92.58, remains well inside its 52-week range of 89.21 – 94.74. The dollar’s overnight advance has been broadly spread, with gains of at least 0.3% against the euro, yen, Aussie dollar, Swiss franc and sterling. The U.S. July employment situation improved more rapidly than anticipated, […] More

More European Data, More Covid Cases, and FOMC Minutes

July 7, 2021

The dollar shows modest overnight gains of 0.2% against the euro and sterling and 0.1% relative to the yen and Swiss franc. Larger advances have occurred against the Australian and New Zealand currencies and the Mexican peso. Equities closed down 1.0% in Japan, 1.5% in Singapore, 0.6% in South Korea, and 0.4% in Hong Kong […] More

Romanian Central Bank Rate Cut

January 18, 2021

The National Bank of Romania cut its key interest rate by 25 basis points to 1.25%. This reduction augments the full percentage point of cuts last year (50 bps in March and 25 bps each in May and August) and takes the rate level to its lowest point in the 21st century. A released statement […] More