Romanian central bank maintains maintain monetary policy rate and level of minimum reserve

The board of Romania’s National Bank (BNR) decided on Wednesday to maintain the monetary policy rate at 6.25% per annum and to maintain the existing level of minimum reserve requirement ratios on both leu-denominated and foreign currency-denominated liabilities of credit institutions.

It restated that the central bank is „vigilantly monitoring” domestic and global economic developments.

A press release shows that the standard VAT hike starting from July 1, 2010, triggered an upswing in the annual inflation rate to 7.58 percent in August versus 7.14 percent the previous month and 4.38 percent in June. At the same time, annual adjusted CORE2 1 inflation rose to 4.5 percent in August after it had stayed around two percent in the first half of 2010.