Romania Ctrl Bk July Lombard Lending Hits 4-Mo High

The Lombard rate in July was at 13%.

In June, lenders borrowed RON352 million through the Lombard facility at a 13.5% rate.

Through the deposit facility, the central bank attracted deposits worth RON1.24 billion in July, over three times lower from RON4.17 billion deposited in June.

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The central bank offers lenders the short-term Lombard loan with an interest rate of the key monetary policy rate plus 4 percentage points. The banks can place their funds at the central bank for an interest rate of the key monetary policy rate minus 4 percentage points.

In July, the central bank raised liquidity by average RON697.7 million per day in repo operations, down 6.7% from the average RON748.4 million per day during the previous month.

The average rate of repo operations in July stood at 9%, down from 9.5% the month before.

Romania’s central bank decided early August to cut its key monetary rate by 0.5 percentage points to 8.5% and to lower minimum reserve requirements on foreign currency-denominated liabilities to 30%.

Since the beginning of 2009, the central bank has cut the key rate in four steps, from 10.25%.