Bank continues interest rate snip

Romania’s central bank (BNR) has continued to cut the key interest rate to boost liquidity in the banking sector, from eight per cent to 7.5 per cent. This is sixth slash since January 2009, when interest rates stood at 10.25 per cent. The bank will maintain the existing level of minimum reserve requirement ratios on both RON and foreign currencies. Thanks to the cooling down of the political scene following last year’s presidential elections, the BNR has seen a relative improvement in foreign investor perception of the Romanian economy. The BNR has detected a temporary stagnation of disinflation, with inflation rising from 4.3 per cent in October to 4.65 per cent in November 2009, due to an increase in excise duties and food prices.

Source: www.thediplomat.ro (February 2010)