The impact of increasing the monetary policy interest is minor in terms of 3-month and 6-month ROBOR, says Mugur Isarescu, Governor of the National Bank of Romania (BNR).
“The effect on the market may be slightly special, we do not see large interest movements. My duty is to convey that and to point out that the change in ROBOR, which is likely to occur, may fall at three months even below 2%, it will depend on market conditions. The impact is minor and therefore excessive media coverage needs to be slowed down,” the BNR governor told a press conference.
The National Bank of Romania (BNR) Board of Directors decided on Monday to increase the monetary policy rate to 2% per annum, from 1.75% per annum starting with January 9, 2018.
Central bank adjusts interest rate policy upward to 2pct per annum
The interest rate policy per annum is raised as of Tuesday, January 9, 2018, to 2 per cent, from 1.75pct, the central bank (BNR)’s Board decided on Monday, a release by the National Bank of Romania sent to AGERPRES announces.
Moreover, the BNR’s Board also ruled to adjust upward the interest rate for the deposit facility to 1pct per year, and the interest rate related to the crediting facility to 3pct per year, from 2.75pct per year.
Another decision by the central bank’s Board is focused on keeping the current levels of the crediting institutions’ minimum mandatory reserve rates applicable to the liabilities in the national currency RON and foreign currency.