Romania raises interest rates by 25bp

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The National Bank of Romania raised its policy rate by 25 basis points (bps) to 1.5% at its October meeting, for the first time since 2018, according to centralbanknews.info.

The bank said it will maintain firm control over money market liquidity, as near-term inflation will be significantly higher than previous expectations under the impact of supply-side shocks, especially increases. higher energy prices.

The move aims to bring and maintain the annual inflation rate, which is expected to increase by 5.6% by the end of the year, in line with the stable inflation target of 2.5% ± 1 point percentage, in a manner conducive to sustainable economic growth as part of the fiscal consolidation process, while preserving financial stability.

The rates on deposit and credit facilities increased by 25 basis points to reach 1% and 2%, respectively.

In addition, the board of directors of the central bank decided to maintain the existing levels of the minimum reserve ratios on the leu and foreign currency liabilities of credit institutions.

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