Romania: Central Bank stays put
August 2, 2012
At its 2 August meeting, the National Bank of Romania (NBR) left the monetary policy rate unchanged at a record low of 5.25% for a third consecutive meeting. The move was widely anticipated by market analysts as the weakening of the leu, caused by recent political turmoil, outweighed the need to spur economic growth. The Bank also left its minimum reserve requirements on both leu and foreign-exchange deposits unchanged. The Bank noted that the persistent political turmoil "generated net capital outflows with an unfavourable impact on the exchange rate." According to monetary authorities, "the slowdown in foreign currency credit growth also triggered a moderation of the expansion in lending to the private sector". The next policy meeting is scheduled for 27 September.