Romania: Central Bank keeps rates on hold
September 27, 2012
At its 27 September meeting, the National Bank of Romania (NBR) left the monetary policy rate unchanged at a record low of 5.25% for a fourth consecutive meeting. The move was widely anticipated by market analysts, as policy makers evaluate the impact of accelerating inflation and political turmoil that pushed the Romanian leu to a record low. The Bank also left its minimum reserve requirements on both leu and foreign-exchange deposits unchanged. Regarding inflation developments, the Bank noted that "the persistence of a wide negative output gap will, however, further exert disinflationary effects." The Bank added that the upcoming parliamentary elections in December will cause heightened uncertainty. Against this backdrop, monetary authorities called for "preserving a prudent monetary policy stance in order to ensure a firm anchoring of inflation expectations". The next policy meeting is scheduled for 2 November.