Romania’s central bank said on Wednesday that it decided to keep its monetary policy rate unchanged at 7%, according to See News.
The central bank, BNR, 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 rate fell to 14.53% in March from 15.52% in February, mainly driven by lower fuel prices compared with the same period in 2022.
Based on its current forecast, the BNR sees the annual inflation rate declining to one-digit levels starting with the third quarter of 2023, in line with the bank’s previous medium-term projection.
The newest statistical data confirmed an economic growth of 4.5% year-on-year during the fourth quarter of 2022, up from 3.7% in the previous quarter. The latest data indicates a mild deceleration in economic growth during the first and second quarters of 2023.
The BNR last changed its key rate on January 11, increasing it from 6.75% to 7%. The central bank will hold its next monetary policy meeting on July 5.