The National Bank of Romania (BNR) could strengthen the monetary policy in the future considering that the inflation rate will stand at 8-8.5 per cent in the next two months, Jeffrey Franks added. “The National Bank has to remain very vigilant,” he pointed out. He stated that the inflation rate is expected to drop significantly after the effects of last year’s VAT hike dissipate two months from now. Last week the BNR’s Administrative Board decided to maintain the monetary policy interest rate at 6.25 per cent and the minimum required reserve ratios for RON and forex-denominated liabilities at the current level for the eighth consecutive session.
