Romania’s National Bank (BNR) decided on November 5 to maintain the monetary policy interest rate at the historic low of 1.75% per year and will not change the minimum reserve requirements for local banks.

The minimum reserve requirements for the banks’ liabilities in lei currently stands at 8% and for those in foreign currency at 14%.

Most analysts have anticipated the Central Bank’s decisions, as BNR governor Mugur Isarescu said at the end of June that the Central Bank would not cut the monetary policy interest rate despite the negative inflation rates, as the central bank expected an economic growth of about 4% this year.

The monetary policy decisions remained unchanged in August and September. BNR last cut the monetary policy interest rate in May, from 2% to 1.75% per year.

editor@romania-insider.com