National Bank of Romania maintains monetary policy rate at 6¼%

By Marisa Wong

Madison, Wis., April 1 - The National Bank of Romania's board kept its monetary policy rate unchanged at 6¼% at its meeting on Thursday, according to a news release issued by the bank.

The annual inflation rate in Romania rose to 7.6% in February from 6.99% in January, which was in line with the board's forecasts.

The board said the rise in inflation was mainly due to significant increases in food and fuel prices.

The board restated that a prudent monetary policy stance is required to preserve the prospects of returning inflation toward the medium-term targets, so the board held the rate at 6¼%.

The board said it also decided to lower the minimum reserve requirements ratio on foreign currency-denominated debt with residual maturities of up to two years to 20% from 25% beginning April 24 through May 23 and to leave the minimum reserve ratio on leu-denominated debt unchanged at 15%.

The board expects to discuss its monetary policy further at its next meeting on May 3.

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