Thursday, September 29, 2011

Romania Central Bank Keeps Rate at 6.25%

The Banca Nationala a Romaniei kept its key monetary policy interest rate unchanged at 6.25%.  The Bank said: "Disinflation is expected to continue in the period ahead, so that annual inflation rate will near the target. The faster disinflation while keeping the monetary policy rate unchanged and amid a moderate leu exchange rate volatility translate into a tightening of real broad monetary conditions aimed at supporting the convergence of inflation towards the medium-term objectives."

Previously the Bank also held the interest rate unchanged at 6.25%, its last move was a 25 basis point cut in May 2010.  Romania reported annual consumer price inflation of 4.25% in August, 4.85% in July, 7.9% in June, compared to 8.4% in May and 8.3% in April 2011, and above the Bank's inflation target range of 3% plus or minus 1%.  The Bank previously noted it expects energy sector reforms and prices rises to keep inflation elevated this year.  The Banca Nationala a Romaniei next meets on the 2nd of November this year.


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