Romania Central Bank Keeps Key Rate Unchanged At 6.25%

Romania’s central bank Thursday left its main interest rate at a record low of 6.25% a year for a seventh straight time, as expected, but lowered the minimum reserve requirements for foreign currency liabilities to 20% from 25%.

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The bank kept the minimum reserve requirements unchanged at 15% for Romanian-leu denominated liabilities.

Analysts had estimated the central bank would refrain from a rate cut at the Thursday meeting, as inflation continues to accelerate.

The annual inflation rate rose to 7.6% at the end of February, above estimations, pushed up by costlier food items.

The central bank targets an annual inflation of 3% at the end of 2011, plus/minus one percentage point around the band. The bank has recently revised upward its forecast on the annual rate to 3.6% in December, from 3.4% previously.

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