Central bank raises key interest to 8 percent

The first reaction to BNR’s decision was a swift appreciation of the national currency, up to RON 3.57 per €1. In the long-run, analysts expect commercial banks to increase interest rates.

This is a second phase of a harsher monetary policy applied by BNR. On October 31, the bank increased the key rate by 0.5 percent, up to 7.5 percent.