Romanian monetary policy

Romania’s Monetary Policy Rate Lowered Again

August 4, 2014

From 10.25% at end-2008, Romania’s central bank interest rate had been cut by 225 basis points in 2009, 175 bps in 2010, 25 basis point in 2011, 75 bps in 2012, 125 bps in 2013 and 50 bps in the first quarter of 2014.  That left the rate at 3.5%, where it stood for the […] More

National Bank of Romania Becomes First Central Bank to Ease in 2014

January 8, 2014

Romania’s base rate has been cut to 3.75% from 4.0% and was accompanied by a statement that projects falling inflation and expresses concern about the negative growth of bank lending to the private sector.  The analysis of macroeconomic indicators points to further disinflation, as a result of the decline in volatile prices, particularly food prices, […] More

National Bank of Romania Sanctions a Further Interest Rate Cut of 25 Basis Points

November 5, 2013

With today’s cut to 4.0%, Romania’s monetary policy interest rate has dropped in four steps by 125 basis points since midyear.  From a peak of 10.25%, previous reductions of 400 bps were implemented in 2009-10 and 100 bps between November 2011 and March 2012.  Analysts anticipated today’s development. In a statement released today, officials at […] 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

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

National Bank of Romania Opts for a Prudent Stance

June 27, 2012

Officials left Romania’s monetary policy rate at 5.25% despite a record low on-year CPI inflation rate of 1.79% in May.  Inflation fell by 0.6 percentage points from April and by 1.35 percentage points from the on-year pace last December.  The monetary policy rate is now 3.5 percentage points higher than inflation, giving Romania one of […] More