Romania's central bank keeps the monetary policy rate unchanged

Romania’s National Bank (BNR) decided yesterday to keep the monetary policy rate at 1.75% per year. It also decided to maintain the minimum reserve requirements for foreign currency denominated liabilities at 12% and the minimum reserve requirements for the local currency lei at 8%. The central bank hasn’t changed its monetary policy since May last year. The inflation rate reached -3% in March compared to -0.93% in December 2015, due to the cut in the VAT rate from 24% to 20% starting January 1. Inflation will remain in a negative territory until July this year, said Mugur Isarescu, BNR governor. The central bank’s inflation target is about 2.5%. editor@romania-insider.com