The policy rate has been at the current level since May 2018, when it was raised by 25 basis points. The deposit facility rate was left unchanged at 1.5% and the lending facility rate was kept at 3.5%. Policymakers also decided to maintain the existing levels of minimum reserve requirement ratios, the Bucharest-based BNR said.
Romanian inflation will stay slightly above target this year before falling to its upper range in 2020, but the central bank’s benchmark interest rate will remain negative, BNR Governor Mugur Isărescu said.
The bank has said a widening current account deficit was worrying, and a stronger leu (the Romanian currency) would not help. Inflation slowed to 3.5% on the year in September, at the upper end of the bank’s 1.5-3.5% target, BNR said.
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