BNR lowers again the monetary policy rate to new record level: 2.25 percent

The Board of the National Bank of Romania decided to drop again the monetary policy rate, from 2.5 percent to 2.25 percent per year, a new record-low level effective from February 5, 2015, reads a press release of BNR.

The new reduction follows successive decision of the Bank's Board with respect to the monetary policy rate that had been applied after the previous meetings of which the most recent was in January 2015 when it was reduced by 0.25 percent to 2.50 percent.

Another change concerns the narrowing of the symmetrical corridor of interest rates on BNR’s standing facilities around the policy rate to ±2 percentage points from ±2.25 percentage points. Hence, with effect from the same date as the monetary policy rate, the interest rate on the BNR’s lending facility (Lombard) will be lowered to an yearly 4.25 percent from 4.75 percent, while its deposit facility rate will remain at 0.25 percent per year.

As regards the minimum reserve requirement ratios on liabilities of credit institutions, the BNR Board has decided to maintain the current levels: 14 percent for foreign currency-denominated liabilities and 10percent for lei-denominated currency liabilities percent.

The Bank will also continue to pursue adequate liquidity management in the banking system, according to the same release.