The National Bank of Romania (BNR) is expected to decide, at the Board meeting scheduled for August 3, to maintain the key interest rate at 6.25 percent, according to the Financial - Banking Analyst Association in Romania (AAFBR). Most analysts believe it is likely for the key rate to remain at 6.25 percent. Estimates for the end of 2011 vary between 6.00 percent and 6.25 percent.

For 2012, the key interest rate is expected to drop to 6 percent, according to the analysts. Their estimates for end-2012 vary between 5.25 percent and 7.00 percent.

BNR decided to keep the key interest rate at 6.25 percent in June. The bank cut the rate from 6.5 percent to 6.25 percent in May last year. In December 2009, the key policy rate was of 8 percent and was gradually decreased throughout 2010.

Irina Popescu, irina.popescu@romania-insider.com

(photo source: Sxc.hu)