Significant uncertainties and risks regarding the outlook of economic activity, implicitly the medium-term evolution of inflation, continue to be generated by the war in Ukraine and the associated sanctions, show the Minutes of the monetary policy meeting of the Board of the National Bank of Romania (BNR) from April 4, 2023.
According to the cited source, other uncertainties and risks arise from the turbulence in the banking systems in the USA and Switzerland, which could exert adverse effects by affecting the economies of developed states and the perception of risk in Central and Eastern Europe, with an impact on financing costs. emphasized several times by the members of the Council.
In this context, the members of the Council insisted once again on the importance of attracting European funds, especially those related to the Next Generation EU program, which is conditioned by the fulfillment of strict targets and milestones in the implementation of the projects, but is essential for the achievement of the necessary structural reforms, including the energy transition, as well as for counterbalancing, at least partially, the contractionary impact of shocks on the supply side, amplified by the war in Ukraine and the tightening of economic and financial conditions on the international level.
According to the BNR, in the current conditions, a balanced mix of macroeconomic policies and the implementation of structural reforms, including through the use of European funds, which stimulate long-term growth potential are essential for maintaining macroeconomic stability and strengthening the capacity of the Romanian economy to face some adverse developments.
Under these conditions, the BNR Board unanimously decided to maintain the monetary policy interest rate at the level of 7%. At the same time, it decided to maintain the interest rate for the credit facility (Lombard) at 8% and the interest rate related to the deposit facility at 6%. Also, the Board of the BNR unanimously decided to keep the current levels of the mandatory minimum reserve ratios for the liabilities in RON and in foreign currency of the credit institutions.
AGERPRES
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