Romania: Central Bank keeps rates on hold amid high inflation
February 5, 2013
At its 5 February meeting, the National Bank of Romania (NBR) left the monetary policy rate unchanged at a record-low of 5.25% for a seventh consecutive meeting. The move was widely anticipated by market analysts, as policy makers continue to evaluate the impact of accelerating inflation. The Bank also left its minimum reserve requirements on both leu and foreign-exchange deposits unchanged.
Regarding inflation developments, the Bank noted that "the inflation rate will reach again the upper bound of the target band by the end of the year following a short-lived pick-up in consumer price growth in 2013 H1, mainly as a result of larger administered price adjustments". Against this backdrop, monetary authorities aim at curbing inflation, while simultaneously supporting sustainable economic growth through a recovery in lending to the private sector.