The management of interest rate in the context of the monetary policy promoted by the National Bank of Romania

Since the fluctuations of interest rate act directly upon the entire economy, the methods of managing interest rate represent the priority topic of analysis in the field of interest rate risk management in the context of monetary policy promoted by the National Bank of Romania (NBR). It is known that significant changes in interest rates in inflationary economic environments create direct negative consequences on the value of bank assets, these consequences are obviously outlined in case of granting fixed-rate loans which have as source of funding the short-term deposits. The conduct of NBR monetary policy in order to achieve the stated purpose and as a result of the macroeconomic analysis has underlain the management of interest rate as a viable way to soften the adverse impact of shocks experienced by the domestic economic environment under permanent risk of volatility of capital flows.