Romania’s National Bank (BNR) hasn’t lowered the monetary policy rate below 1.75% because it wants to encourage saving and creation of financial resources internally, said the BNR governor Mugur Isarescu on Wednesday, June 28.

He suggested that the interest would not fall below this level in the future, reports local News.ro.

The last time the central bank lowered the monetary policy rate was in May 2015, from 2% to the historical minimum of 1.75%. BNR chose not to go below this level, although lower interest rates persist globally, according to Isarescu. Worldwide, most central banks have benchmark interest rates of 0% or close to this level.

The Federal Reserve (Fed) of the United States recently increased interest rates for the second time in the last months.

Romania’s central bank keeps monetary policy rate at 1.75% per year

editor@romania-insider.com