“The inflation will most likely stay within the central bank’s target in 2012. However, inflationary risks remain… and, together with the continued instability in international markets, call for a prudent approach to the monetary policy,” the letter noted.
According to the document, the central bank will not modify the reserve requirements in the next months and will maintain a prudent monetary policy stance.
IMF officials said earlier this week that the central bank shouldn’t lower the reserve requirements in order to maintain sufficient buffer against potential difficulties in the financial system.
“We would advise against a reduction (of the reserve requirements) at this stage. We think that those reserve requirements provide one of the important buffers against any future problem in the financial system,” IMF mission chief to Bucharest, Jeffery Franks told Mediafax by phone.
The central bank has lowered in November its main interest rate by a quarter of a point to a record low of 6% a year, the first cut in a year and a half. However, the bank kept the minimum reserve requirements unchanged at 15% for Romanian-leu denominated liabilities and at 20% for foreign currency liabilities.
Analysts polled by Mediafax estimate the central bank will continue its policy easing in the next months, including by cutting the reserve requirements.
The bank’s next monetary policy meeting is scheduled for January 5.