NBR slashes key interest rate to 5.75 percent

The National Bank of Romania (NBR) decided, yesterday, to cut the key interest rate to 5.75 percent. This decision follows the central bank’s decision to lower the rate to 6 percent last November. As a result, starting today, the interest rate on the deposit facility will be cut to 1.75 percent, while the overnight rate will be 9.75 percent.

The NBR acknowledges that Romania’ recovery out of the economic crisis has continued, boosted by exports and improved industrial and farming output, but the short economic outlook is hindered by the sovereign debt crisis of the EU.

The growth of credit in the private sector remained modest, especially for leu-denominated loans, caused by uncertainties in the European banking sector.

The NBR specialist say the annual inflation rate will slow down to around 3 percent in December 2011, and that a downward adjustment of inflation is expected in the following months.

The next NBR meeting dedicated to monetary policy will take place on February 2nd, when the new quarterly Inflation Report will be examined.

Read more about

Creating Social Media Posts That Drive Traffic To Your Website

read more

Ovidiu Posirca