Romanian Ctrl Bk Cuts Key Rate By 0.25 Pps To 10%, Keeps Min Req Reserves Ratios

The National Bank of Romania, or BNR, cut the monetary policy rate for the first time in 17 months. In 2008, the central bank raised the key rate in seven steps, from 7% at the beginning of the year to 10.25% in August.

All six analysts polled by MEDIAFAX predicted a monetary policy easing following the Wednesday’s meeting, while four of them forecasted a cut in the key rate, as Romania’s economy is affected by the global financial crisis.

The new monetary policy rate will be applied starting with February 5, 2009.

BNR kept the minimum required reserves ratio on both leu-denominated and foreign currencies liabilities of credit institutions at 18%, and 40%, respectively.

The central bank also said it would pursue an adequate management of liquidity in the banking system, through the active use of open-market operations.