The inflation rate is seen at 2.4% at the end of 2016, according to the bank’s latest inflation report, approved in today’s board meeting, which shows a lower-than-expected inflation path compared to the November report.
The lower price growth is due to the “steeper year-on-year drop in volatile prices”, mainly on account of the decline in international oil prices, the persistence of the negative output gap, the consolidation of inflation expectations at lower levels, as well as from the ongoing subdued inflation and weak economic recovery in the euro area and other European countries, the bank said in a statement.
Earlier Wednesday, the central bank lowered its main monetary policy rate by 25 basis points to a new record low of 2.25%, the second rate cut this year, after another 25-basis point reduction in January.
The bank kept its minimum requirement ratios at 14% for hard currency deposits and 10% for leu deposits.
Romania’s inflation fell to 0.8% in 2014, the lowest level in 30 years, amid the declining trend of oil prices, a good farming output and still low demand on the domestic market.