Friday, November 2, 2012

Romania holds policy rate steady at 5.25%

    The central bank of Romania held its policy rate steady at 5.25 percent, as expected, saying that it would continue to ensure "firm liquidity management in the banking system," and retained the current levels of minimum reserve requirements on both leu and foreign currency deposits.
    The National Bank of Romania (NBR), which has cut its policy rate by a total of 75 basis points in the first three months of the year, also said it would release the quarterly inflation report on Nov. 7.
    Inflation in Romania rose to 5.3 percent in September, the highest in 15 months, up from 3.4 percent in August. The NBR targets inflation of 3.0 percent in 2012 and 2.5 percent in 2013, with a one percentage point variation band.
    Its current forecast calls for inflation of 3.2 percent at the end of the fourth quarter of 2012, and in 2013 inflation is forecast to range from 2.6 percent end-first quarter to 3.0 percent at the end of the fourth quarter.
    Romania's Gross Domestic Product rose 0.5 percent in the second quarter from the first, for an annual growth of 1.7 percent.


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