Interest Rate in Romania
Romania - Interest Rate
Central Bank stays put in April
At its monetary policy meeting held on 2 April, 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 to hold came amid a surprise rise in inflationary pressures. After remaining stable at 3.2% in January, inflation jumped to 3.8% in February, overshooting the NBR’s 1.5%–3.5% target range and its own forecast. Similarly, core inflation accelerated to 2.7% in February (January: 2.5%), due to both demand-pull and wage-push pressures. Against this backdrop, the Bank noted that inflation will remain above its target band over the short-term and will follow a higher path than that projected in its February meeting forecasts. It also highlighted the upside risks to its inflation outlook, deriving mainly from the country’s rising fiscal and current account deficits, and a tightening labor market.
Given the presence of inflationary risks, the Bank signaled tighter policy ahead. It was not specified, however, whether that would come in the form of stricter liquidity management and/or further rate hikes.
The next monetary policy meeting is scheduled for 13 May.
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||5.03||0.23 %||May 13|
|Exchange Rate||4.24||-0.34 %||May 13|
|Stock Market||8,165||-0.59 %||May 13|
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May 14, 2019
Industrial output declined 0.2% on an annual basis in March, contrasting the 1.9% year-on-year rise in February.
May 13, 2019
Consumer prices increased 0.6% from a month earlier in April, up from the 0.5% month-on-month increase in March.
April 8, 2019
A second estimate released on 8 April by the Statistical Institute (INSSE) confirmed that the economy grew 4.1% in the fourth quarter over the same period a year earlier, a notch below the third quarter’s 4.2% expansion.
April 2, 2019
At its monetary policy meeting held on 2 April, the National Bank of Romania (NBR) kept the policy rate unchanged at 2.50%.
March 7, 2019
A comprehensive estimate released by the National Institute of Statistics revealed the economy expanded 4.1% in the fourth quarter over the same period a year earlier, decelerating from the third quarter (Q3 2018: +4.2% year-on-year).