Romania’s National Bank (BNR) decided on July 1 to maintain the monetary policy interest rate at 1.75% per year.

It also agreed to keep the minimum reserve requirements for credit institutions’ domestic and foreign currency liabilities at 8%, respectively at 14%. In addition, the central bank decided for the “adequate management of liquidity in the banking system.”

BNR reduced the monetary policy rate by 0.25 percentage points in May, from 2% to 1.75% per year, reaching a new record low. It has also cut the minimum reserve requirements for liabilities in lei by 2 pp, from 10% to 8%.

The cut surprised the analysts, who expected that the Central bank would keep the monetary policy rate at 2%.

editor@romania-insider.com