BNR lowers monetary policy rate to 6.25 pct per annum

The Board of the National Bank of Romania (BNR) has decided to lower its monetary policy rate to 6.25 percent per annum from 6.5 percent, starting May 5, 2010.

It also decided to secure adequate management of liquidity in the banking system and to maintain the existing levels of minimum reserve requirement ratios on both leu-denominated and foreign currency-denominated liabilities of credit institutions.

Consequently, starting May 5, 2010, the rate on the deposit facility will be lowered to 2.25 percent per annum from 2.5 percent and the rate on the lending facility (Lombard) will be 10.25 percent per annum versus 10.5 percent. At the same time, the penalty rate for deficits of leu-denominated minimum reserve requirements will drop to 15.5 percent, starting with the May 24-June 23, 2010, maintenance period.

AGERPRES