Romania: Central Bank stays put
November 2, 2012
At its 2 November meeting, the National Bank of Romania (NBR) left the monetary policy rate unchanged at a record low of 5.25% for a fifth consecutive meeting. The move was widely anticipated by market analysts, as policy makers 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 persistence of a considerable negative output gap is softening the magnitude of the unfavourable impact of higher global commodity prices and leu exchange rate movements on inflation. The Bank reiterated that the upcoming parliamentary elections in December will cause heightened uncertainty. Against this backdrop, monetary authorities aimed to anchor inflation expectations in the context of the transitory inflation bout, of heightened volatility of capital flows and the developments in exchange rates. The next policy meeting is scheduled for 7 January 2013.