BNR lowers again the monetary policy rate to 4.25 per cent
October 03 2013
BNR (Romania's central bank) decided on reducing again the monetary policy rate after a similar measure has been applied upon the previous Board of Directors meeting in August 2013. Under these circumstances, starting October 1st, the rate is 4.25%, 0.25 percentage points down.
'During the meeting BNR's Board of Directors had on September 30, there has been decided to lower the monetary policy rate to 4.25% a year from 4.5%, starting October 1st , to properly manage liquidity in the banking system, as well as maintain the current levels of minimum reserve requirement ratios on both RON- and foreign currency-denominated liabilities of credit institutions.' BNR announced through a press release.
Romania's Central Bank promised IMF(International Monetary Fund) not to lower the rate as long as the inflation does not meet the required target, meaning that the next cut could only be performed after this year's last board meeting in November.
Thus, financial analysts estimate the rate will go down another 0.5 percentage points starting December 2013, since the inflation is expected to continue its decrease path.
BNR also engaged to closely monitor domestic and international economic development in order to ensure price stability over the medium term and also, financial stability by proper calibration of the monetary policy and adequate use of its available instruments.
'During the meeting BNR's Board of Directors had on September 30, there has been decided to lower the monetary policy rate to 4.25% a year from 4.5%, starting October 1st , to properly manage liquidity in the banking system, as well as maintain the current levels of minimum reserve requirement ratios on both RON- and foreign currency-denominated liabilities of credit institutions.' BNR announced through a press release.
Romania's Central Bank promised IMF(International Monetary Fund) not to lower the rate as long as the inflation does not meet the required target, meaning that the next cut could only be performed after this year's last board meeting in November.
Thus, financial analysts estimate the rate will go down another 0.5 percentage points starting December 2013, since the inflation is expected to continue its decrease path.
BNR also engaged to closely monitor domestic and international economic development in order to ensure price stability over the medium term and also, financial stability by proper calibration of the monetary policy and adequate use of its available instruments.
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