Romania Ctrl Bank Leaves Key Rate Unchanged At 6.25%

The move was widely anticipated in the market, as a recent raise in the sales tax to 24% and steep pay cuts in the public sector are expected to increase inflationary pressures and negatively impact the economy.

Further details from the central bank are due for release later today.

The central bank has cut its key rate in four steps this year, from 8% at the end of 2009, but kept the minimum reserve requirements unchanged.

Over the course of 2009, the central bank has lowered the key monetary policy rate by 225 basis points.