Romanian National Bank reduces inflation forecast to 3% for 2020
Monetary policy stance is configured to ensure and preserve price stability over the medium term.
Articol de Radiojurnal, 11 Februarie 2020, 14:43
For end-2020 and end-2021, the contribution of indirect tax changes to the annual CPI inflation rate is projected at 0.3 percentage points and 0.4 percentage points respectively, reflecting higher excise duties on tobacco products and fuels.
Against this background, the monetary policy stance is configured to ensure and preserve price stability over the medium term in a manner conducive to achieving sustainable economic growth and safeguarding a stable macroeconomic framework.
The NBR Board decided to leave unchanged the deposit facility rate at 1.50 percent and the lending (Lombard) facility rate at 3.50 percent. In addition, the NBR Board decided to maintain the existing level of the minimum reserve requirement ratio on leu-denominated liabilities of credit institutions. At the same time, given the developments in foreign currency lending and the adequate level of forex reserves, the NBR Board decided to cut the minimum reserve requirement ratio on foreign currency-denominated liabilities of credit institutions to 6 percent from 8 percent starting with the 24 February – 23 March 2020 maintenance period. The measure also aims to continue the harmonisation of the minimum reserve requirements mechanism with the relevant standards and practices of the European Central Bank and the major central banks across the European Union.
Source:BNR
