Romania Ctrl Bk Must Lower Reserve Requirements To Boost Loans In Lei

„If Romania, the central bank, wants to encourage loans in lei, then it has to lower the reserve requirements to 2%, same as the reserve requirements for loans in euros. This would be the natural measure. Anyway, the inflation is falling and I don’t see an impediment from that area,” said Robert Rekkers, head of Romanian lender Banca Transilvania.

Rekkers estimated the central bank will cut its key rate by 50 basis points to 7.5% on November 4, without forwarding a figure for the reserve requirements.

According to Radu Craciun, investment manager at Eureko Pensii, the central bank will cut the monetary policy rate by only 25 basis points at its meeting next week.

However, Alpha Bank’s CEO Sergiu Oprescu said the central bank is likely to keep its key rate unchanged at 8%.