BNR brings down the monetary policy rate to new historic low: 2.5 pct

Romania’s central bank, BNR, lowered again the monetary policy rate to 2.5 percent, a new historic low, which will be effective starting with January 8, 2014, announces a press release of the bank.

Successive reductions of the monetary policy rate had been applied following the previous meetings of BNR’s Board, of which the most recent was in November 2014 when it was reduced by 0.25 percent to 2.75 percent.

Another decision concerns the narrowing of the symmetrical corridor of interest rates on BNR’s standing facilities around the policy rate to ±2.25 percentage points from ±2.5 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 4.75 percent per year, instead of 5.25 percent, while its deposit facility rate will remain at 0.25 percent per year.

Additionally, the Board chose to keep unchanged the current levels of minimum reserve requirements ratios on liabilities of credit institutions and decided to pursue adequate liquidity management in the banking system.