Romania: Central Bank stays put after government collapse
May 2, 2012
At its 2 May meeting, the National Bank of Romania (NBR) left the monetary policy rate unchanged at a record low of 5.25%. The move marked the first halt in eight months after the Bank cut rates four consecutive times. Market analysts expected a 25-basis points cut, but switched to a halt in the easing cycle after the collapse of the Romanian government on 27 April. The Bank also left its minimum reserve requirements on foreign-exchange deposits at 20% and the ratio for leu deposits at 15%. On the political events, the Bank noted that domestic developments heighten capital flow volatility, thus the need for a prudent monetary policy stance for the aggregate broad monetary conditions. The next policy meeting is scheduled for 27 June.