Central bank reduces key interest rate to 1.75% per annum

The Board of Directors of the National Bank of Romania (BNR) decided, in Friday's meeting, to reduce the monetary policy interest rate to 1.75% per year, from 2% per year, starting with June 2, informs the central bank.

At the same time, the BNR decided to reduce the interest rate for the deposit facility to 1.25% per annum, from 1.50% per annum, and the interest rate for the credit facility (Lombard) to 2.25% from 2.50% per annum, and to maintain the levels of minimum required reserve ratios for the credit institutions' liabilities in the national currency and in the foreign currency.

The National Bank also states that it will continue to carry out repo operations and buy government securities in lei on the secondary market.