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

It also decided to maintain the minimum reserve requirement ratios for foreign currency denominated liabilities and for the local currency lei at the current levels, namely 10% for foreign currency denominated liabilities and 8% for the local currency lei.

The central bank hasn’t made any change to its monetary policy since May last year.

The inflation rate returned to a positive territory in January, reaching 0.1% compared to -0.54% in December 2016, and increased to 0.2% in February. According to BNR, the economic growth accelerated more than expected in the fourth quarter of 2016. The real GDP growth reached 4.7%, from 4.3% in the third quarter.

“Against this background and based on currently available data,” the BNR board decided to keep unchanged the monetary policy indicators. However, BNR Governor Mugur Isarescu said that the central bank will reduce minimum reserve requirement ratios for euro denominated liabilities whenever it will have the chance.

editor@romania-insider.com