Romanian Central bank increases monetary policy interest rate to 9.5%

Romanian Central Bank (BNR) board decided on Wednesday to increase the monetary policy interest rate for the third time this year, from 9 to 9.5%. The 9% level was established on February 4, 2008, after growing from 7.5 to 8% in January. According to a BNR release, the minimum obligatory reserves for banks will be maintained at the current level – 20% of the passive funds in Romanian Lei (RON) and 40% of those in convertible currencies.

BNR pays 3.05% interest for RON reserves, 0.85% for US Dollars and 1.25% for euro.

Analysts expect the interest growth for RON credits and deposits. Florin Catu, ING Bank chief-analyst says that the effects for the populace will be close to zero on a short term, but an interest growth for deposits may be expected on a medium and long term.