BNP Paribas: BNR will continue to reduce key interest rate and will accept a weaker leu

BNR shows increased tolerance for a weaker leu, despite interventions to attenuate decline. The strict budget and slowing down of exports and economic growth might determine officials in Romania to allow the depreciation of euro to 4.5 units per euro in the next 6 months,' said Bartosz Pawwlowski, the coordinator of the report taken over by Bloomberg.

The has depreciated by 5.8% in the last 6 months.

BNR announced on Thursday a reference exchange rate of 4.3585 lei/euro, the highest level in the last 16 months and close to the historic level of 4.3688 lei/euro/A higher exchange rate was posted by the central bank on 30 June 2010, when the reference reached a historic high level. BNR announced 4.3460 lei/euro on Wednesday.The National Bank reduced on Wednesday the monetary policy by 0,25 points, to a record low level of 6% when inflation created conditions to stimulate economic recovery.

Articole similare