Romania’s National Bank (BNR) will keep the monetary policy rate at 1.75% until the end of this year, according to the Association of Financial-Banking Analysts Romania (AAFBR).

However, local analysts have opposing views on the monetary policy rate’s evolution in 2016. Some consider that it will go down to 1.5% by December 2016 whereas others believe that it will increase to 2.5%.

BNR has reduced the monetary policy rate by 0.25% in May, from 2% to 1.75% per year, reaching a new record low. It has also cut the minimum reserve requirements for liabilities in lei by 2 percentage points, from 10% to 8%.

The measure surprised the analysts, who expected that the Central bank would keep the monetary policy rate at 2%.

editor@romania-insider.com