The Banca Nationala a Romaniei reduced its key monetary policy interest rate by 25 basis points to 5.75% from 6.00%. The Bank said: “The recovery of the Romanian economy has continued – underpinned by favourable dynamics of exports, as well as of industrial and farming output – whereas the growing uncertainties regarding global and European growth amid a worsened global risk appetite and heightened sovereign debt crisis in the euro zone are hindering the short-term outlook for the overall economic activity in Romania.”
Previously the Bank also cut the rate 25 basis points in November, prior to that its last move was a 25 basis point cut in May 2010. Romania reported annual consumer price inflation of 3.44% in November, compared to previous readings of 3.45% in September, 4.25% in August, 4.85% in July, 7.9% in June, 8.4% in May and 8.3% in April 2011, and now within the Bank’s inflation target range of 3% plus or minus 1%.
