Interest Rate in Romania
Romania - Interest Rate
NBR stands pat in October
On 3 October, the National Bank of Romania (NBR) kept the policy rate unchanged at 2.50%, while also leaving the deposit facility rate at 1.50%, the lending facility (Lombard) rate at 3.50% and maintaining the reserve requirements on both leu- and foreign currency-denominated liabilities. The decision was in line with analysts’ expectations.
The Bank’s decision to leave monetary parameters unchanged reflected the need to balance above-target inflation with a widening current account deficit. On the one hand, although inflation eased to 3.9% in August (July: 4.1%), in line with expectations, it remained above the 1.5%–3.5% target band. On the other hand, a worsening current account deficit prompted the Bank to stay put, as expected capital inflows, following the looser monetary stance in the ECB, are projected to strengthen the leu, which will thus likely bruise exports in the process.
Looking ahead, the Bank expects inflation to remain above the target band for the remainder of the year, before settling down within the target band in the first half of 2020. That said, risks to inflation stem from an uncertain fiscal policy and the evolution of the current account deficit, amid a slowing global economy.
Policymakers will meet again on 6 November.
FocusEconomics Consensus Forecast analysts expect the policy rate to end 2019 and 2020 at 2.59% and 2.85%, respectively.
Romania - Interest Rate Data
|Policy Interest Rate (%)||4.00||2.75||1.75||1.75||1.75|
5 years of economic forecasts for more than 30 economic indicators.
Romania Interest Rate Chart
Source: National Bank of Romania.
|Bond Yield||4.07||0.23 %||Sep 04|
|Exchange Rate||4.29||-0.34 %||Sep 04|
|Stock Market||9,262||-0.59 %||Sep 04|
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October 14, 2019
Industrial production fell 7.0% on an annual basis in August, following July’s 3.0% contraction and marking the worst result since June 2009.
October 11, 2019
Consumer prices rose 0.1% month-on-month in September, matching August’s result.
October 10, 2019
GDP grew 4.4% year-on-year in the second quarter (Q1: +5.0% year-on-year), according to a second release published by Romania’s Statistical Institute on 10 October.
October 3, 2019
On 3 October, the National Bank of Romania (NBR) kept the policy rate unchanged at 2.50%, while also leaving the deposit facility rate at 1.50%, the lending facility (Lombard) rate at 3.50% and maintaining the reserve requirements on both leu- and foreign currency-denominated liabilities.
September 12, 2019
Industrial output fell 3.0% on an annual basis in July, an improvement from June’s 6.2% contraction but marking the second fall in a row.