Romanian National Bank keeps interest rate unchanged at 3.5%

The National Bank of Romania (BNR) board decided on Tuesday, May 7, to keep the monetary policy interest rate unchanged at 3.5 percent a year. BNR also decided to keep the mandatory minimum reserves rates for Romanian banks unchanged, according to a press release. These decisions were taken after analyzing and approving the Quarterly Report on Inflation, which shows that inflationary pressures are at moderate levels. The annual inflation rate fell to 1.04 percent in March 2014, compared to 1.55 percent in December 2013. At the same time, the medium annual inflation rate fell to 2.8 percent, from 3.2 percent at the end of February, and the medium annual inflation rate determined on the harmonized consumer prices index – which is most relevant in evaluating the convergence process to EU – was 2.3 percent in March, according to BNR. The multiannual inflation rate target of the Romanian national Bank is 2.5 percent with a variation interval of +/- 1 percent. editor@romania-insider.com