NBR to keep interest rate at 6.5%, the highest in the region
The NBR (National Bank of Romania) today will leave the RON
interest rate unchanged, at 6.25% a year, and will not change the
minimum reserve requirements, either, anticipate unanimously the
members of the Association of Financial-Banking Analysts in
Romania. Foreign analysts expect a similar decision.
"Although economic activity remains very weak - with a Gross
Domestic Product contraction of 2% this year - the central bank has
no room to manoeuvre for the time being. Conditions on the
financial markets can change fast, and become unfavourable for the
RON and for Romanian T-bills. The political situation remains
unstable, with things to potentially become even more troubled when
talks start on the 2011 budget," says Gaelle Blanchard, analyst
with French group Société Générale, BRD's majority
shareholder.
This means the NBR will continue to have the highest key interest
rate among countries in the region. In the Czech Republic, the
central bank has held the key interest rate at 0.75% a year, while
in Hungary the monetary authority decided on Monday to hold the
forint interest rate at 5.25% a year. The decision of the National
Bank of Poland is also expected today, with analysts anticipating
it will remain at 3.5% a year.