Romania Ctrl Bk To Cut Key Rate Again But Not By Much

Romania's central bank will reduce in the upcoming period the key monetary policy rate, but not significantly, said Wednesday Lucian Croitoru, an adviser of the central bank governor Mugur Isarescu.

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"The central bank will cut again the key rate in the next period, but not substantially. Whoever expects large rate cuts will be disappointed," Croitoru said during a roundtable discussion organized by consultancy firm AT Kearney.

He added the private sector asks for deeper cuts, following the 7% economic contraction in 2009 and lower inflation.

Croitoru said his statements reflect his personal view and not the central bank's opinion.

On February 3, the central bank reduced the key rate by 50 basis points to 7%, the second cut this year after a similar decision early January.

In 2009, the central bank cut the key rate in several steps from 10.25% to 8%.

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