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FX.co ★ Romanian Central Bank Maintains Key Policy Rate

Romanian Central Bank Maintains Key Policy Rate

(RTTNews) - Tuesday, the Romanian central bank left its key interest rate unchanged.

The National Bank of Romania maintained its monetary policy rate at 10.25% per annum. Economists had forecast a quarter-point reduction in the rate. The central bank has maintained the rate in the past two rate setting sessions, after hiking it from 10% on August 1, 2008.

The central bank also retained the existing minimum reserve requirement ratios on both leu-denominated and foreign currency-denominated liabilities of credit institutions. On October 30, 2008, the central bank had reduced the minimum reserve requirement ratio on leu-denominated liabilities of credit institutions to 18% from 20%. The reserve requirement on foreign currency-denominated liabilities of credit institutions is 40%.

In a statement, the central bank said it will pursue an adequate management of liquidity in the banking system, through the active use of open-market operations. The bank reiterated that it will continue to closely monitor domestic developments and of the global economic evolutions to adequately adjust its policy instruments.

Inflation has eased sharply in recent months. Romania's consumer price inflation dropped to 6.7% in November from 7.4% in October. The economy grew a better-than-expected 9.1% year-on-year in the third quarter.

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