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.