Romania v. the bank raises its key rate

Regional today

Thursday, May 12, 2022, 10:05 a.m.

Photo by Radu Bercan/Shutterstock.com

The National Bank of Romania announced on Tuesday that it would raise its key rate to 3.75% from 3.00% from Wednesday May 11 due to runaway inflation and the economic impact of the war in Ukraine, according to a report from Romaniajournal.ro.

The central bank also decided to raise the deposit facility rate to 2.75% per annum from 2% and the lending facility rate to 4.75% from 4%, it said. she said in a statement after a board meeting on monetary policy.

The current reserve requirement ratios for banks’ liabilities denominated in leu and foreign currencies will remain unchanged.

According to the central bank, the updated forecasts show a further significant deterioration in the outlook for inflation, as the projected path of its annual momentum has seen an additional significant upward revision across the horizon.

Consumer prices in Romania rose 10.15% year-on-year in March, compared to an increase of 8.53% in February, according to the most recent data.

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