Page 61 - SE Outlook Regions 2022
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The BNR increased the refinancing rate by 25bp to 1.75% on
November 9, against consensus expectations for a steeper tightening
of the monetary stance.
However, it also widened the symmetric interest rates corridor,
consequently raising the Lombard rate by 50bp to 2.5%, which is likely
to have a visible impact on the money market rates, while keeping the
deposit facility rate at 1%.
This was followed by a more modest increase in the refinancing rate by
25bp to 2.00% at the bank's January 10 monetary board meeting, when
it also widened the interest rate corridor by another 25bp to 1pp. The
25bp rate increase was smaller than bank analysts anticipated, and left
Romania with the lowest refinancing rate among its peers as of January
2022.
Given that it acted too little, too late, Romania’s central bank will have
to increase its refinancing rate not only in 2022 but also in 2023, taking
it up to 5.5%, according to a research report by JP Morgan.
ry board meeting, the BNR could increase the policy rate by 0.5pp.
61 SE Outlook 2022 www.intellinews.com
