Romania’s National Bank (BNR) decided on Friday to keep the monetary policy rate at 1.75% and maintain the current levels of the minimum reserve requirement ratios for foreign currency at 12% and for the local currency lei at 8%.

The inflation stayed negative at the end of 2015, in line with the prognosis, reads the BNR press release. The VAT cut on food in June last year was the main reason for the negative inflation.

The inflation rate reached -0.9% in December 2015, compared to -1.1% in November and -1.87% in August last year. Without the VAT rate cut on food, the annual rate of inflation would have stayed close to 2%.

editor@romania-insider.com