Romania's Central bank keeps monetary policy rate at 1.75% per year
Romania’s National Bank (BNR) board decided on Wednesday, September 30, to maintain the monetary policy interest rate at the historic low of 1.75% per year and to keep the minimum reserve requirements at 8% for the local currency lei and 14% for foreign currency, for the third meeting in a row.
Analysts were expecting this decision, due to the negative inflation and the turmoil abroad.
The central bank’s decision aims to ensure price stability in the medium term, reads a BNR press release. A balanced mix of fiscal and monetary policies is the key in maintaining macroeconomic stability, according to BNR.
BNR Governor Mugur Isarescu said yesterday that he expected interest rates for the local currency to remain low in the following 12 to 18 months, as the interest rates in the Eurozone are also likely to stay low.
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