The Board of the National Bank of Romania (BNR) decided during its today meeting to lower the monetary policy rate to 2.5 percent per annum from 2.75 percent starting with January 8, 2015.
According to a press release, the central bank also decided to narrow the symmetrical corridor of interest rates on BNR’s standing facilities around the policy rate to +/- 2.25 percentage points from +/- 2.5 percentage points.
Thus, starting Thursday, the interest rate on the BNR’s lending facility (Lombard) will be lowered to an annual 4.75 percent from 5.25 percent, while its deposit facility rate will remain at 0.25 percent per annum;
Another result of bankers’ meeting was to pursue adequate liquidity management in the banking system and to keep unchanged the current levels of minimum reserve requirements ratios on liabilities of credit institutions.
Today’s move was in line with analysts expectations.
Last year the central bank officials operated three policy rate cuts after resuming the downward cycle in August, when the financial institution decided a first cut of 0.25 percentage points from 3.5 percent to 3.25 percent.
The details will be presented by BNR Governor Mugur Is?rescu in a press briefing scheduled at 15:00.