Historic decision: NBR redefines monetary policy rate

The National Bank (NBR) is preparing a new set of monetary policy instruments, in line with its new statute, as a net creditor to the banking system. The NBR became a net creditor to the banks in the system in October, for the first time since the late nineties, after injecting major sums into the market in a month during which players refrained from trading among themselves, amid a lack of confidence. So far, the central bank has used a series of instruments to inject liquidity into the market when necessary. However, formally, the one-week deposit remains the central monetary policy instrument of the NBR, but it was adequate at the time when the central bank absorbed excess liquidity from the market. “Things have not calmed down yet, so that a decision could be made. We will change the definition of the monetary policy interest. The instruments (for injecting liquidity) have not yet been standardised,” says Doina Antohi, deputy manager of the Department of Monetary Policy and Macroeconomic Modelling within the NBR.