Romania’s central bank board has decided to increase by one percentage point to 21.25 per cent its intervention rate in a move to control inflation.
“The measure is in line with the central bank’s strategy to aim for inflation of 14 per cent this year,” a central bank statement said. The new intervention rate came into force last Thursday.
The central bank has raised its intervention rate for short-term drained deposits four times since August from 18.25 per cent to 21.25 per cent. The move was seen as balancing the negative effects of bulging non-governmental loans on the country’s trade balance.
Source: InvestRomania
