Romania's c. bank raises key rate further

Banking

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Romania's central bank raised its monetary policy rate on Wednesday amid rampant inflation due to increased prices for electricity and natural gas caused by the war in Ukraine and the related sanctions, according to Romaniajournal.ro.

The board of the National Bank of Romania (BNR) decided to raise the benchmark rate by a full percent to 4.75% from 3.75%.

The bank also lifted the lending facility rate and the deposit facility rate from 4.75 and 2.75% to 5.75% and 3.75%, respectively. Previously, the bank raised its interest rates by 75 basis points on May 10.

At the same time, BNR agreed to maintain firm control over money market liquidity and to keep the existing levels of minimum reserve requirement ratios on both leu- and foreign currency-denominated liabilities of credit institutions.

In June, Romania's inflation accelerated to 14.5% in June from 13.8% in May. 

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