February 7 (SeeNews) - Romania's central bank said on Friday it has decided to keep its monetary policy rate unchanged at 2.50% and to cut the minimum reserve requirement ratio on foreign currency-denominated liabilities of banks.
The central bank, BNR, also decided to maintain the deposit facility rate at 1.50% per year and the lending facility rate at 3.50% per year, it said in a statement after a board meeting on monetary policy.
BNR also decided to cut the existing ratios of minimum reserve requirements for foreign currency-denominated liabilities of banks to 6% from 8%, starting from the February 24 – March 23 maintenance period, and to keep the minimum reserve requirement ratio on leu-denominated liabilities at 8%.
The central bank last changed its key rate in May 2018, increasing it to 2.50% from 2.25%.
Romania's consumer prices rose by 4.04% year-on-year in December, compared to an increase of 3.77% in the previous month, the national statistical office said. The average consumer price inflation in 2019 was 3.8%.
On November 8, the central bank said it has decided to lower its 2019 inflation forecast to 3.8% from 4.2% predicted in August, outside its target band of 1.5-3.5%. BNR has also lowered its projection for 2020 inflation to 3.1% from 3.4%.
(1 euro = 4.7642 lei)