Romania’s National Bank (BNR) decided yesterday to keep the monetary policy rate at 1.75% per year.

It also decided to maintain the minimum reserve requirements for foreign currency denominated liabilities at 12% and the minimum reserve requirements for the local currency lei at 8%.

The central bank hasn’t changed its monetary policy since May last year.

The inflation rate reached -3% in March compared to -0.93% in December 2015, due to the cut in the VAT rate from 24% to 20% starting January 1. Inflation will remain in a negative territory until July this year, said Mugur Isarescu, BNR governor.

The central bank’s inflation target is about 2.5%.

editor@romania-insider.com