Romania Monetary Policy


Central Bank cuts interest rates to boost economic activity

At its 2 February meeting, the National Bank of Romania (NBR) cut the monetary policy rate by 25 basis points to a record low of 5.50%. The move marked the third consecutive rate cut and was expected by market analysts, as low inflationary pressures allow the Bank to stimulate economic activity in the midst of the protracted Euro area debt crisis. The Bank commented that statistical indicators reveal the persistence of a negative output gap despite positive dynamics in exports, industrial and farming outputs.


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