BNR Keeps Key Rate Unchanged At 6.25%

05.03.2011 By Florentina Dragu

Romania’s central bank Tuesday left its main interest rate at a record low of 6.25% a year for the eighth straight time, after costlier fuels and food items pushed the inflation rate to the highest in 31 months.

The bank also froze the minimum reserve requirements at 15% for Romanian-leu denominated liabilities and at 20% for foreign currency liabilities.

Romanian annual inflation accelerated to 8% in March, the highest rate since August 2008.

The central bank targets an annual inflation of 3% at the end of 2011, plus/minus one percentage point around the band. The bank has recently revised upward its forecast on the annual rate to 3.6% in December, and hinted at another negative revision at its quarterly inflation report due May 5.