BNR cuts minimum reserve requirements ratio to 10 pct

Newsroom 30/09/2016 | 17:01

The Board of the National Bank of Romania (BNR) decided in September 30 meeting to cut the minimum reserve requirements ratio on foreign exchange-denominated liabilities of credit institutions to 10 percent from 12 percent, to maintain the monetary policy rate at 1.75 percent per annum and to have an adequate liquidity management in the banking system starting October 24- November 23.

As BNR expected, the annual inflation rate grew by 0.6 percentage points compared with the previous month when it was -0.2 percent.

The annual inflation rate remained negative due to the developments in administered prices, while volatile and tobacco prices grew each year, according to BNR.

The inflation rate advanced to -1.8 percent in August and based on the Harmonized Index of Consumer Prices rose to -1.4 percent.

Economic growth exceeded expectations in the second quarter of the year as a result of the expansion in household consumption and investment, with an impact on the current account deficit. Net exports increased their negative contribution to annual GDP growth.

The annual increase rate of unit wage costs in industry remained high in the second quarter of the year as well as in the previous quarter.

The annual growth rate of RON-denominated loans stood at 14.5 percent in real terms in August, while the annual dynamics of foreign currency-denominated loans remained negative at -12.9 percent.