Romania’s central bank, BNR decided on Tuesday to keep its monetary policy rate unchanged at 7%, according to See News.
The central bank also decided to maintain the lending facility and deposit facility rates at 8.00% and 6.00%, respectively, it said in a statement following a board meeting on monetary policy.
The existing ratios of minimum reserve requirements for both Romanian leu and foreign currency-denominated liabilities of credit institutions will also remain unchanged.
The decisions aim to bring the annual inflation rate back in line with the 2.5 percent ±1 percentage point flat target on a lasting basis by anchoring inflation expectations over the medium term, in a manner conducive to achieving sustainable economic growth, the BNR said.
Romania’s annual inflation eased to 15.52% in February 2023 from 16.37% in December 2022, relatively in line with forecasts, mainly driven by lower fuel prices under the impact of significant base effects and the change made to the energy price capping and compensation scheme starting January 1, 2023.
Based on its current forecast, the BNR sees the annual inflation declining at a faster pace over the following months, in line with the latest medium-term forecast from February 2023. Annual inflation is seen to end the year below the previously-anticipated value, the central bank said.
The newest statistical data confirmed an economic growth rate of annual 4.6% and quarterly 1% during the fourth quarter of 2022, with the latest analyses pointing towards a more subdued slowdown in economic growth in 2023 than previously anticipated.
The BNR last changed its key rate on January 11, increasing it from 6.75% to 7.00%.
The central bank will hold its next monetary policy meeting on May 10.