The monetary board of the National bank of Romania decided to retain
its main interest rate at 6.25% for the 5th meeting. The Banca
Nationala a Romaniei also announced no changes in the minimum reserve
requirement ratios on both leu-denominated (15%) and foreign
currency-denominated deposits (25%). The Bank will no doubt be closely
monitoring the medium term effects of last year's VAT tax increase,
and may even consider interest rate cuts later in the year. Inflation
slowed to 7.73% in November from 7.9% in October.