Romanian central bank on subdued rate hike: "we're moving at our own pace"
"We are following our own strategy, adapted to the particularities of the Romanian economy. We are raising the refinancing rate at our own pace," Dan Suciu, the spokesman of the National Bank of Romania (BNR), told Bloomberg.
iulian ernst · Journalist
· Updated · 1 min read
"We are following our own strategy, adapted to the particularities of the Romanian economy. We are raising the refinancing rate at our own pace," Dan Suciu, the spokesman of the National Bank of Romania (BNR), told Bloomberg.
BNR on January 10 hiked the refinancing rate by 25bp, half the analysts' expectations and also had the rate hike operated last week by its peer in Poland - a country with a similar inflationary profile.
"Of course, we are following what the other central banks [in the region] are doing, we cannot be disconnected from the region, and we are also in a process of tightening monetary policy," he also said.
Out of the 11 analysts surveyed by Bloomberg before the BNR monetary board meeting, six expressed expectations for a 50bp hike and the rest of five expected a 25bp hike.
BNR is thus left with the lowest key interest rate in the region after the Central Bank of Poland raised the reference rate by 50bp to 2.25%. In Hungary, the key interest rate is already 2.4%, and in the Czech Republic, it is 3.75%.
Romania's inflation rate was 7.8% YoY in November, more than twice the upper limit of the inflation target band of 2.5% +/-1pp.
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