Interest Rate in Romania
Romania - Interest Rate
Central Bank holds rates unchanged at its February meeting
At its monetary policy meeting held on 7 February, the National Bank of Romania (NBR) kept the policy rate unchanged at 2.50%. The Bank also left the deposit facility rate unchanged at 1.50%, the lending facility (Lombard) rate at 3.50% and the reserve requirement on both leu- and foreign-currency denominated liabilities unaltered.
The Bank’s decision was underpinned by softening inflation and some cooling in economic activity. Easing price pressures were reflected by December’s data on both headline and core inflation. At the same time, slowing growth in industrial production in October-November and announcements by several major financial institutions that they will likely postpone their investment plans due to the recently-introduced tax on banks’ assets point to some deceleration in growth. Going ahead, the Bank expects inflation to decline further in the next three quarters, before approaching the upper bound of the Bank’s target range of 1.5%–3.5% in 2020.
Persistent albeit softening inflationary pressures and the ECB’s gradual monetary policy normalization should prompt the Bank to hike interest rates this year, although the new tax on banks’ financial assets could interfere with the Bank’s decisions.
The next monetary-policy meeting is scheduled for 2 April.
Romania Interest Rate Forecast
Met the why particular Consensus Forecast panelists expect the policy rate to end 2019 at 2.79% and 2020 at 3.19%.
Romania - Interest Rate Data
|Policy Interest Rate (%)||4.00||2.75||1.75||1.75||1.75|
5 years of economic forecasts for more than 30 economic indicators.
Romania Interest Rate Chart
Source: National Bank of Romania.
|Bond Yield||4.75||0.23 %||Mar 11|
|Exchange Rate||4.23||-0.34 %||Mar 11|
|Stock Market||7,936||-0.59 %||Mar 11|
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February 14, 2019
According to a preliminary estimate released by the National Institute of Statistics on 14 February, the economy expanded 4.1% in the fourth quarter over the same period last year, slightly decelerating from the third quarter (Q3: +4.2% year-on-year).
February 13, 2019
Industrial output dropped 0.8% in annual terms in December, contrasting November's 2.6% expansion.
February 13, 2019
Consumer prices jumped 0.8% over the previous month in January, following December’s 0.2% month-on-month increase.
February 7, 2019
At its monetary policy meeting held on 7 February, the National Bank of Romania (NBR) kept the policy rate unchanged at 2.50%.
January 14, 2019
Industrial output grew 2.6% in annual terms in November, below October's 3.5% expansion.