Romania’s central bank (BNR) left, on Wednesday, its main interest rate at a record low of 6.25 per cent a year for the tenth straight time, as inflation is still likely to top the bank’s forecast, Mediafax informs. The bank also froze the minimum reserve requirements at 15 per cent for RON denominated liabilities and at 20 per cent for foreign currency liabilities.
The International Monetary Fund has recently said the annual inflation is likely to ease further over the coming months, but the year-end rate will probably come in above the central bank’s forecast of 5 per cent.
Romanian consumer prices fell 0.29 per cent in June from a month earlier, pushed down by cheaper food items, while the annual inflation eased to an unexpected 7.93 per cent, from a 33-month high of 8.41 per cent in May. The central bank targets an annual inflation of 3 per cent at the end of 2011, plus/minus one percentage point around the band. The bank has revised upwards its inflation forecast for 2011, to 5.1 per cent, from 3.6 per cent, sensibly above the target. The central bank has left its main interest rate unchanged at an all-time low of 6.25 per cent a year since May 2010. The bank cut its key rate in four steps last year, from 8 per cent at the end of 2009.