Prima pagină » English » Romania Ctrl Bk Cuts Key Rate By 50 Bps To An All-time Low Of 6.5%

Romania Ctrl Bk Cuts Key Rate By 50 Bps To An All-time Low Of 6.5%

Romania's central bank on Monday decided to cut its key monetary policy rate by 50 basis points to 6.5%, the lowest level ever recorded.
Romania Ctrl Bk Cuts Key Rate By 50 Bps To An All-time Low Of 6.5%
29 mart. 2010, 11:34, English

The new rate applies as of Tuesday.

The central bank’s Board also decided to leave the minimum requirements unchanged at 15% for Romanian leu-denominated liabilities and at 25% for hard-currency liabilities.

Analysts largely expected the rate cut, citing concern about reduced demand and consumption and the leu’s quick strengthening against the euro.

It is the third rate cut this year from 8% in December 2009.

On Friday, central bank governor Mugur Isarescu said a falling inflation is a good reason to cut the key rate.

Romania’s annual inflation slowed to 4.5% in February, from 5.2% a month earlier.