In its meeting held on 30 September 2014, the Board of the National Bank of Romania decided to lower the monetary policy rate to 3.0 percent per annum from 3.25 percent starting with 1 October 2014.
NBR also decided to cut the minimum reserve requirements ratio on RON denominated liabilities of credit institutions to 10 percent from 12 percent starting with the 24 October - 23 November 2014-maintenance period and to keep the minimum reserve requirements ratio on foreign currency-denominated liabilities at 16 percent.
With a view to mitigating interbank money market rate volatility, the NBR Board decided to narrow the symmetrical corridor of interest rates on NBR’s standing facilities around the policy rate to ±2.75 percentage points from ±3 percentage points. Thus, starting 1 October 2014, the interest rate on the NBR’s lending facility (Lombard) will be lowered to an annual 5.75 percent from 6.25 percent, while its deposit facility rate will remain at 0.25 percent per annum.
In the “Press Release” that followed the Board of the National Bank of Romania meeting, the NBR has reiterated its commitment to the adequate use of all its available instruments, on the background of close monitoring of domestic and global economic developments, with the aim of securing the achievement of its overriding objectives of medium-term price stability and the preservation of financial stability.
Impact on investors: The National Bank of Romania (NBR) is continuing the easing cycle by cutting the monetary policy rate.