Romania’s Central Bank has decided to keep the key interest rate flat at 8.75 percent, and pledged to keep policy tight to continue bringing down inflation.
“We will continue to vigilantly monitor monetary and macroeconomic trends, standing ready to react in order to achieve medium-term disinflation objectives,” says a spokesman for Romania’s Central Bank.
On 14 November the NBR will release the quarterly inflation report. Central Bank representatives also stated that they will remove the limit on foreign currency lending to non-hedged borrowers from the start of next year.
This came after the decision taken by the Central Bank in the last part of 2005, to set a maximum hard currency lending limit for commercial banks at 300 percent of their own funds, as part of efforts to slow a surge in credit.
Analysts said that after data showed annual inflation scored a new post-communist low in October of 4.8 percent, the recent decision was widely expected.
Next year the Central Bank has set a target of 3-5 percent inflation.