National Bank of Romania decisions on monetary policy issues

Trimite stirea unui prieten
Nume *
E-mail *
E-mail prieten *
Cod validare * Turing Number
Tastati codul din imagine (doar cifre)

2016-10-02 11:12

NBR Board decisions on monetary policy issues (press release):

In line with expectations, the annual inflation rate added 0.6 percentage points against the previous month to -0.2 percent in August 2016. The annual inflation rate remaining in negative territory was attributed to the developments in administered prices, while volatile and tobacco prices posted positive dynamics year on year.

Adjusted CORE2 inflation1 followed a slightly upward path, coming in at 0.5 percent in August.

Turning to the 12-month averages, inflation rate advanced to -1.8 percent in August 2016 and that based on the Harmonised Index of Consumer Prices rose to -1.4 percent.

Economic growth exceeded expectations in 2016 Q2 (6 percent), as a result of the expansion in household consumption and investment, with an impact on the current account deficit. Net exports thus increased their negative contribution to annual GDP growth. On the supply side, the services sector had further a prevailing contribution to the pick-up in economic activity.

In 2016 Q2 as a whole, the annual rate of increase of unit wage costs in industry remained as elevated as in the previous quarter, given that the step-up in wage growth was countered by the improvement in labour productivity dynamics.

Real monetary conditions remained stimulative, underpinning the favourable developments in credit to the private sector, including in terms of the currency breakdown. The annual growth rate of leu-denominated loans stood at 14.5 percent in real terms in August, while the annual dynamics of foreign currency-denominated loans remained strongly negative at -12.9 percent.

Against this background, the share of leu-denominated loans in total loans to the private sector climbed to 55.9 percent versus a 34.6 percent low in May 2012. These developments confirm the improved monetary policy transmission, while also helping mitigate the risks to financial stability.

Recent assessments reconfirm the outlook for the annual inflation rate to remain in negative territory until end-2016. Thereafter, the annual inflation rate is expected to pick up gradually and return inside the variation band of the flat target in 2017 H2, amid the fading-out of the effects exerted by the standard VAT rate cuts and by global disinflationary shocks, along with inflationary pressures from aggregate demand and unit wage costs.

Risks to the inflation outlook stem from elevated uncertainties surrounding both the domestic and external environments.

Based on currently available data and in the context of heightened uncertainty, the Board of the National Bank of Romania has decided to keep unchanged the monetary policy rate at 1.75 percent per annum and to further pursue adequate liquidity management in the banking system.

Given the contraction in foreign currency lending, the consolidation of the adequate level of forex reserves (EUR 33.1 billion at end-August 2016) and their improved composition, the NBR Board has decided to cut the minimum reserve requirements ratio on foreign exchange-denominated liabilities of credit institutions to 10 percent from 12 percent starting with the 24 October - 23 November 2016 maintenance period.

The measure aims to continue the harmonisation of the minimum reserve requirements mechanism with the relevant standards and practices of the European Central Bank and the major central banks across the European Union. The minimum reserve requirements ratio on leu-denominated liabilities remains unchanged at 8 percent.

The NBR Board decisions aim to ensure and preserve price stability over the medium term in a manner conducive to achieving sustainable economic growth. The consolidation of the economic picture calls for a balanced macroeconomic policy mix and progress in structural reforms.

The NBR is closely monitoring external and domestic developments and stands ready to use all its available tools during this period of heightened uncertainty.

According to the NBR Board decision, the account (minutes) of discussions underlying the adoption of the monetary policy decision during today’s meeting will be posted on the NBR website on 7 October 2016, at 3:00 p.m.

In line with the announced calendar, the next NBR Board meeting dedicated to monetary policy issues is scheduled for 4 November 2016, when a new quarterly Inflation Report is to be examined.

Taguri: Banca Nationala a Romaniei (BNR)  plata SEPA  dobanda de politica monetara  National Bank of Romania (NBR)  monetary policy rate  BRD Finance  Consiliul Fiscal  


Adauga un comentariu
Nume *:

E-mail *:
(nu se afiseaza pe site)

Turing Number

Tastati codul din imagine (doar cifre)  

Adauga un comentariu folosind contul de Facebook

Alte stiri din categoria: ENGLISH

Agreement between National Bank of Greece and Export-Import Bank of Romania for the sale of Banca Romaneasca

National Bank of Greece (“NBG”) announces the signing of a definitive agreement with ExportImport Bank of Romania (“EximBank”) for the sale of its 99.28% stake in Banca Romaneasca (“BROM”). The Transaction is expected to increase NBG’s CET1 ratio detalii

Banca Transilvania financial results as at December 31, 2018

BT’s Preliminary Financial Results as at December 31, 2018 (press release) Banca Transilvania, the largest lender of the local economy in 2018: customer support twinned by the Bancpost integration ●196,000 loans to companies and individual detalii

EU Regulation on cross-border payments

Frequently asked questions: Intra-EU cross-border payments Brussels, 14 February 2019 What did the Commission propose in 2018 and why? EU cross-border payments in euro are very cheap or even free in euro area Member States (priced as domestic payments) but still expensive in non-euro area Member States. The two amendments proposed by the Commission in March 2018 to the Regulation on cross-border payments will reduce the cost of intra-EU payments within the entire EU and unify the single retail payments market. This will benefit in particular citizens and businesses from the non-euro area Member States by letting them have access to cheaper intra-EU euro payments. Transactions made in EU currencies other than the euro are not detalii

National Bank of Romania (NBR) Board decisions on monetary policy: rate unchanged at 2,5%, risks stem from new fiscal measures

NBR Board decisions on monetary policy The annual CPI inflation rate continued to go down in December 2018 to 3.27 percent from 3.43 percent in November, moving deeper into the variation band of the flat target. Thus, the NBR fulfilled its objective of maintaining price detalii

Ultimele Comentarii