Romania: Central Bank keeps monetary policy rate on hold
March 28, 2014
At its 28 March meeting, the National Bank of Romania (NBR) decided keep the monetary policy rate unchanged at 3.50%, which was on par with market expectations. In addition, the NBR decided to maintain the current levels of the minimum reserves requirement on both leu- and foreign currency-denominated liabilities of credit institutions. According to the NBR, there was a pick-up in economic activity due to an improvement in both domestic and external demand. However, the latest economic data point to a deceleration in economic activity that is on par with the Bank's projections. “The latest assessments reconfirm the prospects for an annual inflation rate to remain subdued over the months ahead, in the vicinity of historical lows.” By keeping the monetary policy rate on hold, the NBR aims to keep consumer prices under control over the medium term at a figure that is in line with the Bank's target of 2.5%. FocusEconomics Consensus Forecast panelists expect the policy rate to be 3.67% in 2014. For 2015, the panel foresees the rate closing the year at 3.75%.
Author: Dirina Mançellari, Senior Economist