The Board of the National Bank of Romania, having convened for the meeting of 10 January 2022, decided to increase the monetary policy rate to 2.00 percent per annum, from 1.75 percent per annum, as of 11 January 2022.
“The NBR Board decisions aim to bring back and maintain the annual inflation rate in line with the 2.5 percent ±1 percentage point flat inflation target, inter alia via the anchoring of inflation expectations over the longer time horizon, in a manner conducive to achieving sustainable economic growth in the context of the fiscal consolidation process, while safeguarding financial stability,” reads a press release.
The central bank also to extend the symmetric corridor of interest rates on standing facilities around the policy rate to ±1.00 percentage point from ±0.75 percentage points; thus, starting 11 January 2022, the lending (Lombard) facility rate will be raised to 3.00 percent per annum from 2.50 percent per annum, while the deposit facility rate will be kept at 1.00 percent per annum.
NBR decided as well to keep the existing levels of minimum reserve requirement ratios on both leu- and foreign currency-denominated liabilities of credit institutions.
More information available here.