Monetary policy drops to historically low rate. BNR also lowers the cash reserve ratio

Romania’s Central Bank Board decided to cut down again the monetary policy rate during the first meeting of the year. Thus, starting January 9, 2014 the monetary rate will reach a new historic low – 3.75 percent per year. 

Also, the required reserve ratio has been lowered for both lei-denominated liabilities and for foreign currency liabilities as suggestedin mid-December 2013 by Mugur Isarescu, BNR’s Governor. Consequently, the cash reserve ratio for lei-denominated liabilities fells by 3 percent to 12 percent, at the same time the foreign currency liabilities dropping from 20 percent to 18 percent, according to a press release. The diminution will come into force on January 24, 2013, being effective until February 23, 2014.