National Bank keeps the monetary policy rate at 1.50 percent per annum

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In its meeting of 12 November 2020, the Board of the National Bank of Romania decided to keep the monetary policy rate at 1.50 percent per annum and to leave unchanged the deposit facility rate at 1.00 percent per annum and the lending facility rate at 2.00 percent.

At the same time, the central bank decided to cut the minimum reserve requirement ratio on foreign currency-denominated liabilities of credit institutions to 5 percent from 6 percent starting with the 24 November – 23 December 2020 maintenance period and to maintain the minimum reserve requirement ratio on leu-denominated liabilities at 8 percent.

Finance minister Florin Citu, on the other hand, would have liked a cutback of the rate. He said at the end of October that the monetary policy rate is still higher compared to other EU states.

“The monetary policy rate interest is still high. Romania still has room to reach zero or even a negative rate”, FinMin said back then.

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