Romania Monetary Policy November 2016


Romania: Central Bank keeps monetary policy rate unchanged in November

November 4, 2016

At its policy meeting on 4 November, the National Bank of Romania (NBR) met market expectations in deciding to keep the monetary policy rate unchanged at 1.75%, where it has been since May 2015. The Bank also left unchanged the reserve requirement on foreign-currency-denominated liabilities, which it had lowered at its previous meeting from 12.00% to 10.00%, as well as the minimum reserve requirement ratio on credit institutions’ leu-denominated liabilities at 8.00%.

In its accompanying statement, the NBR noted that economic conditions were positive following Q2’s impressive 6.0% GDP growth. Inflation remained subdued but will return close to target in 2017 (2.5% plus/minus 1.0 percentage point), thanks in part to a better functioning of monetary policy transmission.

Against a backdrop of heightened uncertainty in Romania and abroad as well as low inflation expectations, the NBR decided to keep the rate unchanged in order to “ensure and preserve price stability over the medium term in a manner conducive to achieving sustainable economic growth.”

The Bank is scheduled to meet again on 6 January.

FocusEconomics Consensus Forecast panelists expect the policy rate to end 2016 at 1.78%. For 2017, the panel foresees the rate closing the year at 2.34%.

Author:, Economist

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Romania Monetary Policy Chart

Romania Monetary Policy November 2016

Note: National Bank of Romania reference rate in %.
Source: National Bank of Romania

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