The forecast on the 2015 year-end inflation was also revised down to 3%, from 3.3% previously envisaged. The average annual inflation is seen at 1.4% this year and at 2.4% in 2015.
The central bank approved today its latest quarterly inflation report, which will be released on August 6.
The report projects the annual inflation will come in at “markedly lower rates” than previously forecast until mid-2015.
“Similarly to the previous assessments, upside risks associated with this outlook stem chiefly from external factors, particularly from a potential higher volatility of capital flows on the backdrop of investors’ declining appetite for risky assets,” the central bank said.
Romania’s inflation eased for the second straight month to a fresh record low of 0.66% in June, from 0.94% a month earlier.
“The improved industrial performance continues to support Romania’s economic growth, amid strong external demand and the gradually rebounding domestic demand,” the bank said.
At its monetary policy meeting today, the central bank has lowered its main lending rate by 25 basis points to an all-time low of 3.25% a year, but kept the minimum reserve requirements unchanged for both leu and foreign currency deposits.
“The consistent implementation of an adequate mixture of macroeconomic policies, as well as the prudent resumption of the financial intermediation process along a proper remuneration of bank deposits to stimulate domestic saving are pivotal to strengthen the Romanian economy and its resistance to external shocks,” the bank said in a detailed statement after the meeting.