Romanian Ctrl Bk To Gradually Ease Monetary PolicyPublish date: 04-02-2009
The National Bank of Romania, or BNR, will cut the key rate in several steps, of 0.25 percentage points, along with reductions in the minimum required reserve ratios, Lucian Anghel, chief economist within Romanian largest bank BCR, said Tuesday.
"One could see cuts in small steps, of 0.25 percentage points, but BNR will keep all the time a differential of at least 3 percentage points between the monetary policy rate and the inflation," Anghel said.
Romanian central bank decided to keep the key monetary policy interest rate at 10.25%, in its last board meeting early January. It also kept the minimum required reserves ratio on both leu-denominated and foreign currencies liabilities of credit institutions at 18%, and 40%, respectively.
BNR's Board will have a monetary policy meeting on Wednesday, February 4.
Anghel said that, without a graduate decrease in interest rates, Romanian economy cannot recover, following the lending slowdown in the last months of 2008.
"The Romanian economy cannot function with a single-digit lending growth," he said. Anghel forecasts the central bank will ease the monetary policy starting with Wednesday's meeting.
- Insurance market stagnated in 2013 while GDP chare dropped to 1.3%
- The Romanian Leasing Market as of December 31, 2013
- Millennium Bank reports best results since its launch, helped by stronger banking income and cost cuts
- BCR cheapens First Home loans and lowers interest loans for loans in lei
- Millennium Bank's new Salary account clients receive up to 600 lei bonus and their utility bills' payment
- GarantiBank and Seamless introduce SEQR in Romania: the newest mobile payment solution
- Bancpost telecom services, now provided exclusively by Romtelecom and COSMOTE Romania
- Millennium Bank cards offer discounts in Domo stores
- BCR Supervisory Board reshuffles Management Board
- NBR decide to lower the monetary policy rate to 4.25 percent per annum
- Common appointments in Romtelecom and COSMOTE Romania
- Up to 5.5% annual interest rate for Millennium Bank's promotional three-month lei deposit
- Eurozone in recovery mode but gap between North and South still widening
- UniCredit Tiriac Bank and RBS Romania announce the successful completion of the retail clients' migration
- Millennium Bank grants First House loans in lei