The board of the National Bank of Romania (BNR) is due to decide on Wednesday what it will do about the monetary policy interest rate. The interest level was set to 9% on February 4, 2008, after rising from 7,5 to 8% in January. According to some economic analysts, BNR may decide a new rise on Wednesday - for a third time in 2008.
Ten analysts out of 14 questioned by Reuters in early March expected BNR to increase the rate. Most of them forecast a 0.5 percentage point rise. They say such a decision would be prompted by excessive demand and inflationary pressure on the national currency RON. Rising the interest is a measure to target inflation as inflation rose to 8% in February and forecasts say it would reach 8.3% in March.
Votes have eqal value within the BNR board, so a decision may be taken with five votes against four. The board is formed by nine members named by the Parliament for a five year period. They cannot be MPs or members of a political party, or be members of the judiciary or the public administration.
The current board started its term in 2004. Four of the members represent the Central Bank - the governor, the first deputy governor and to deputy governors. Five others come from business and academic field.
Current members of the board:
- Governor Mugur Isarescu (serving since September 1990)
- First deputy governor Florin Georgescu (since 2004)
- Deputy governor Eugen Dijmarescu (since 2004)
- Deputy governor Cristian Popa (second term)
- Member Maria Ene
- Member Agnes Nagy
- Member Napoleon Pop
- Member Silviu Cerna
- Member Virgil Stoenescu.
