Analysts: NBR will keep its interest rate unchanged at 6.25% this time, too

Autor: Liviu Chiru 28.09.2010

The National Bank will keep its RON benchmark rate at the current level of 6.25% per annum and will not operate any change in terms of minimum reserves, either during its Wednesday monetary policy session, analysts believe.
Worries about an inflation outburst in autumn triggered by the raised public transportation tariffs and the delayed effect of the VAT hike, are likely to prevent the central bank from making any moves this time, too.
The benchmark interest rate has not been modified since May, when a small reduction, by a quarter of a percentage point, was operated.
The NBR has taken advantage of the still period on the forex market, where there are no more downward pressures on the RON, and has left more liquidity on the monetary market, which has pushed interest rates down. Thus, even for longer maturities, of one or three months, interest rates have now gone down below 5% per annum. Banks lend to each other for very short periods at interest rates of 2-3% per annum. However, political unrest is likely to change things.