Romanian Ctrl Bk To Gradually Ease Monetary Policy – BCR

“One could see cuts in small steps, of 0.25 percentage points, but BNR will keep all the time a differential of at least 3 percentage points between the monetary policy rate and the inflation,” Anghel said.

Romanian central bank decided to keep the key monetary policy interest rate at 10.25%, in its last board meeting early January. It also kept the minimum required reserves ratio on both leu-denominated and foreign currencies liabilities of credit institutions at 18%, and 40%, respectively.

BNR’s Board will have a monetary policy meeting on Wednesday, February 4.

Anghel said that, without a graduate decrease in interest rates, Romanian economy cannot recover, following the lending slowdown in the last months of 2008.

“The Romanian economy cannot function with a single-digit lending growth,” he said. Anghel forecasts the central bank will ease the monetary policy starting with Wednesday’s meeting.