The Board of Directors of the National Bank of Romania decided on Thursday to keep the monetary policy interest rate at 7.00 percent per annum and the lending (pawn) interest rate at 8.00 percent per annum, as well as the deposit interest rate at 6.00 percent yearly

Risks and uncertainties arising from the configuration of the package of fiscal measures expected to be implemented in order to continue fiscal consolidation, as well as from the future conduct of fiscal and income policies, which are likely to will cause an inflationary impact in the short term, remain mentioned in order to increase the disinflationary pressure of fundamental factors in the more distant time horizon.

What else do the BNR data show:

• This is evidenced by the latest analysis more modest economic growth in the third quarter compared to previous forecasts, etci in deceleration compared to the previous quarter, which implies, however, a relative recovery of annualized GDP growth under the influence of the base effect.

• Thus, in the first month of the third quarter, retail and automobile sales, as well as services to the public recorded a new decline in annual dynamics, and industrial production decreased somewhat in annual terms. However, the current account deficit significantly slowed its reduction compared to the corresponding period of the previous year, mainly due to the deterioration of the primary income balance.

• The latest data show the labor market slowing of the monthly increase in the number of employees from the economy in June-July and maintaining a relatively stable BIM unemployment rate in June-August

• the lei/euro exchange rate rose relatively sharply in the first half of September – similar to currency exchange rates in the region – and then tended to stabilize at a new level. At the same time, the national currency recorded a significant depreciation against the US dollar against the background of its strengthening on international financial markets.