RSS
Central bank keeps key interest rate at 7pct per annum
In its Friday meeting, the Board of the National Bank of Romania decided to keep the monetary policy rate at 7.00 percent per annum, the central bank informs in a press release.
Moreover, the BNR Board also decided to leave unchanged the lending (Lombard) facility rate at 8.00 percent per annum and the deposit facility rate at 6.00 percent per annum, as well as to keep the existing levels of minimum reserve requirement ratios on both leu- and foreign currency-denominated liabilities of credit institutions.
The key interest has remained unchanged since January last year, when BNR increased it to 7 percent per annum from 6.75 percent per annum.
"The BNR Board decisions aim to bring the annual inflation rate back in line with the 2.5 percent ?1 percentage point flat target on a lasting basis, inter alia by anchoring inflation expectations over the medium term, in a manner conducive to achieving sustainable economic growth. At the current juncture, the balanced macroeconomic policy mix and the implementation of structural reforms, also by using EU funds to foster the growth potential over the long term, are of the essence in preserving a stable macroeconomic framework and strengthening the capacity of the Romanian economy to withstand adverse developments. The BNR closely monitors developments in the domestic and international environment and will continue to use the tools at its disposal to achieve the fundamental objective of price stability in the medium term," the institution points out.