Romanian Central Bank Cuts Key Rate By 50 Bps

Romania’s central bank (BNR) decided, today,  to cut its monetary policy interest rate by 50 basis points to 8% on the year, in line with market expectations. The bank kept the minimum reserve requirements unchanged. This was the fifth rate cut this year, from 10.25% in January, in an effort to support the ailing economy.

 

BNR decided to mantain the minimum reserve requirements ratios unchanged at 30% for foreign currency-denominated liabilities, and at 15% for Romanian leu-denominated liabilities.

 

Romania's gross domestic product fell 7.6% on the year in the first half and the most recent forecasts point to a economic contraction of 8%-8.5% for the whole of 2009.