BANCI | ENGLISH

NBR maintains the monetary policy rate at 10.25 percent

Autor: Bancherul.ro
2009-01-06 20:27

In its meeting of January 6, 2009, the Board of the National Bank of Romania has decided the following:
� to maintain the monetary policy rate at 10.25 percent per annum;
� to pursue an adequate management of liquidity in the banking system, through the active use of open-market operations;
� to leave unchanged the existing minimum reserve requirement ratios on both leu-denominated and foreign currency-denominated liabilities of credit institutions.
The NBR Board is restating that the central bank will continue to closely monitor domestic developments and global economic evolutions so as to adequately adjust its instruments in order to ensure the achievement of its objectives related to both price stability and financial stability, in the context of a balanced macroeconomic policy mix.

The analysis of the latest macroeconomic developments shows a continuation of the disinflation process and a slowdown of economic growth amid lower investment expansion, especially in the construction sector, diminished industrial output and reduced export orders. The elevated uncertainties related to the magnitude of the impact of the international crisis on the Romanian economy are worth noting.

In November 2008, the annual inflation rate dropped to 6.74 percent from a peak of 9.04 percent in July, being still above the upper limit of the variation band around the 2008 target. The adjusted CORE2 inflation � calculated by excluding the impact of administered and volatile prices (vegetables, fruit, eggs and fuel) as well as the effect of vice tax � has also slowed, its annual rate falling to 6.4 percent in November.

On the other hand, the depreciation of the annual average leu-euro exchange rate (9.3 percent in 2008 compared to the previous year), is fueling inflationary pressures. These pressures are likely to remain high as the correction of the external deficit is ongoing and the adjustment of the domestic demand will proceed gradually.
As world financial market turmoil has deepened and risk adversion by investors increased, the volatility of the leu exchange rate has intensifyed, in line with developments registered by other currencies in the region.

The annual increase in real terms of credit to the private sector has moderated under the impact of reduced access of banks to external financing, of a gradual reduction of the excess liquidity in the banking sector, as well as of increased prudence by banks amid growing uncertainties related to the effects of the global crisis on the Romanian economy.

The diminished external financing in the context of heightened global financial turmoil, along with increased public spending in the last months of 2008 have triggered a rise in interest rates, which remain at relatively high levels, well above the monetary policy rate. Therefore, the financing of the public deficit in this period, along with a continuation of the lending process require a gradual provision of adequate liquidity in the banking system in a manner that would not encourage exchange rate volatility.

Under these circumstances, the consolidation of disinflation and ensuring a sustainable financing of the Romanian economy against heightened international financial market turmoil, require the maintenance of the present monetary policy stance in support of the formulation and implementation of a balanced macroeconomic policy mix. Implementation of the measures announced by the new government aimed at cutting the budget deficit simultaneously with a reorientation of public spending mainly towards investment and job creation, are essential to ensuring continued disinflation and a controlled adjustment of the external deficit, as prerequisites for achieving sustainable economic growth.

In light of the available data, the NBR Board had decided to maintain the monetary policy rate at 10.25 percent per annum, to pursue an adequate management of liquidity in the banking system, through the active use of open-market operations, and to leave unchanged the existing minimum reserve requirement ratios on both leu-denominated and foreign currency-denominated liabilities of credit institutions.

The NBR Board is restating that the central bank will continue to closely monitor domestic developments and global economic evolutions so as to adequately adjust its instruments in order to ensure the achievement of its objectives related to both price stability and financial stability, in the context of a balanced macroeconomic policy mix.

The next NBR Board meeting dedicated to monetary policy is scheduled on February 4,2008, when a the quarterly Inflation Report is to be examined.

Comentarii

Adauga un comentariu

Adauga un comentariu folosind contul de Facebook

Alte stiri din categoria: ENGLISH

Merger of Alpha Bank and UniCredit Bank Romania

Press Release: "Alpha Services and Holdings announces a strategic partnership with UniCredit in Romania Merger of Alpha Bank Romania and UniCredit Bank Romania and creation of third largest bank in Romania by total assets, with Alpha Bank retaining a detalii

National Bank of Romania (NBR) Board decisions on monetary policy

NBR Board decisions on monetary policy In its meeting of 4 April 2023, the Board of the National Bank of Romania decided: • to keep the monetary policy rate at 7.00 percent per annum; • to leave unchanged the lending (Lombard) facility rate at 8.00 percent per annum and the deposit facility rate at 6.00 percent per annum; • to keep the existing levels of minimum reserve requirement ratios on both leu- and foreign currency-denominated liabilities of credit institutions. The annual inflation rate went down to 15.52 percent in February 2023, from 16.37 percent in December 2022, relatively in line with forecasts. The decrease was mainly driven by the sizeable drop in the dynamics of fuel and detalii

ING posts 2022 net result of €3,674 million, dividend of €0.389 per share

ING press release: ING posts FY2022 net result of €3,674 million,
proposed final 2022 dividend of €0.389 per share

4Q2022 profit before tax of €1,711 million; CET1 ratio remains strong at 14.5%
•
Profit before tax up 29% on 4Q2021 and 24% on 3Q2022, mainly driven by higher income
•
Higher net interest income, as a further increase in liability margins helped offset TLTRO impact this quarter
•
Risk costs declined to 17 bps of average customer lending

Full-year 2022 net result of €3,674 million, supported by growing customer base and increase in lending and deposits
•
On a full-year basis, our primary customer base grew by 585,000 detalii

BT Financial Results as at 30 September 2022

BT Financial Results as at 30 September 2022 Banca Transilvania – sustained growth in customers and operations during the first nine months of the year "We continued our robust growth in the number of clients and transactions, with a dynamic well above the market average. We have been growing steadily and continued financing companies and individuals, despite the fact that the financial market is more fraught with uncertainty than ever and
the funding costs and capital requirements are additional factors driving the uncertainty in the economy. We remain committed to our objective - to be the main supporter of the economy and of the state for the development of Romania", states Mr. Ӧmer Tetik, Chief Executive detalii