Interest Rate in Romania
Romania - Interest Rate
Central Bank holds rates unchanged at August meeting
At its monetary policy meeting on 6 August, the National Bank of Romania (NBR) decided to keep the policy rate unchanged at 2.50%. Moreover, the Bank decided to leave the deposit facility rate unchanged at 1.50% and the lending facility (Lombard) rate at 3.50%. Meanwhile, the reserve requirement on both leu- and foreign-currency denominated liabilities was left unaltered.
Moderating core inflation and a significant deceleration in growth underpinned the NBR’s decision. Headline inflation stabilized in June at 5.4%, remaining well above the upper band of the Bank’s target range of 1.5%–3.5%, where it has been for six consecutive months. However, core inflation eased slightly, influenced by softer growth in international food prices. Moreover, figures on industrial and construction production, along with retail sales for the second quarter, suggest that economic growth has settled into a slower pace since the beginning of the year. As domestic demand cooled, the Bank assumes prices will be subject to more moderate inflationary pressures.
The NBR expects inflation to stay above its target range in the coming months then decline to near the upper band of the range by the end of the year. The Bank stated that risks to the outlook stem mainly from administered prices, future wage dynamics and the fiscal stance pursued by the government. In its communiqué, the NBR declared it will secure price stability, which it sees as a condition for sustainable economic growth and called for structural reforms to strengthen the country's productive capacity and achieve sustainable growth.
The next monetary policy meeting is scheduled for 3 October.
Romania Interest Rate Forecast
Met the why particular Consensus Forecast panelists expect the policy rate to end 2018 at 2.88%. For 2019, the panel sees the rate closing the year at 3.53%.
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||4.83||0.23 %||Sep 20|
|Exchange Rate||3.97||-0.34 %||Sep 20|
|Stock Market||8,354||-0.59 %||Sep 20|
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September 12, 2018
Consumer prices increased 0.3% over the previous month in August, contrasting July’s 0.5% drop.
September 12, 2018
Industrial output expanded 7.3% in annual terms in July, a six-month high and a notable acceleration from June’s 4.6% growth rate.
September 7, 2018
A second estimate released on 7 September by the Statistical Institute (INSSE) confirmed that the economy expanded 4.1% over the same period last year in the second quarter, a notch above the first quarter’s 4.0% expansion.
August 14, 2018
In the second quarter, the economy expanded 4.1% over the same period last year, according to a preliminary estimate released by the National Institute of Statistics on 14 August.
August 11, 2018
Industrial output expanded 4.6% in annual terms in June, a notable acceleration from May’s 1.2% growth rate.