Monday, January 7, 2013

Romania holds policy rate steady at 5.25%

    Romania's central bank held its policy rate steady at 5.25 percent and said it would ensure adequate liquidity in the banking system. Further details of its decisions would be released later.
    The National Bank of Romania, which cut its policy rate by 75 basis points in 2012, also said in a statement that it would maintain existing levels of minimum reserve requirements on leu and foreign-currency denominated liabilities of credit institutions.
    Inflation in Romania eased to 4.56 percent in November, down from 4.7 percent in October, but remains above the central bank's 2013 target of 2.5 percent, plus/minus one percentage point.
    The central bank forecasts inflation gradually declining this year to 3.5 percent in the fourth quarter and then to continue slowly falling during 2014 to 3.0 percent in the third quarter of that year, the last quarter in its forecast horizon.
   Romania's economy contracted by 0.5 percent in the third quarter from the previous quarter for an annual drop in Gross Domestic Product of 0.6 percent, down from annual growth of 1.7 percent in the second quarter.


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