Analysts: BNR keeps the interest at 1.75% on Friday

The financial-banking analysts expect that the National Bank of Romania keeps on Friday the interest of monetary policy at 1.75% and the compulsory minimum reserves for the liabilities in lei and foreign currency.

‘According to the opinions expressed by the participants to a survey at the level of the Association of Financial-banking analysts in Romania, BNR could keep the interest of monetary policy at 1.75% at the next meeting of the Board on 5 February. The majority of the people who took part in the survey consider that BNR could keep the compulsory minimum reserve for liabilities at 8% and for the liabilities in foreign currency at 12% on 5 February’ the press release of the association says.

The compulsory minimum reserves for liabilities in lei could be reduced in the months to come down to 6% at the end of 2016 and 4% at the end of 2017.

At the same time, the process of reduction of the compulsory minimum reserves for liabilities in foreign currency could go on in the future and the quota for constitution are estimated at 10%in December 2016 and 8% in December 2017 according to the quoted source.

The interest for monetary policy is estimated at a constant level of 1.75%for the whole 2016.

Most participants to the survey consider that BNR could increase the interest at 2.25% for the whole of next year. Against the previous survey, which took place last month we could see the calming down of the expectations regarding the increase of interest in 2017 (the estimates at present are at 2.25% for December 2017, dropping from 2.50%) the association says.

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