The National Bank of Romania hiked its policy rate for the first time in a decade today (January 8), citing inflation in excess of its forecasts and a booming economy.
The central bank’s board chose to raise the policy rate 25 basis points, to 2%, and the deposit and lending rates by the same amount, to maintain a corridor of 1 percentage point on either side of the main rate.
In a statement on its decision, the board notes inflation moved up sharply to 3.2% in November 2017, having been at 1.
- Auditors find ‘flaws’ in ECB’s crisis management framework
- Home truths on Europe’s NPLs
- Central banks lack ‘firepower’ to combat financial crises, says report
- Economists need to better understand macrofinancial links – BIS paper
- Ukrainian bank owners carried out ‘co-ordinated fraud’, forensic audit says