Romania's Central Bank could cut key interest rate to 2%
The Romanian National Bank (BNR) could reduce the monetary policy interest rate by 25 basis points, from 2.25% to 2%, on March 31.
This would be the last cut in the interest rate within the cycle which began in August 2014, according to analysts from Romanian lender BCR, cited by local Mediafax.
Low inflation and the EUR/RON exchange rate stability would trigger the reduction.
The BCR economists say that BNR could then start to reduce the minimum reserves rates gradually in local and foreign currency, by about two percentage points each.
On February 4, BNR decided to reduce the monetary policy interest rate by 0.25 percentage points, from 2.5% to 2.25%, a new historic low.
editor@romania-insider.com
Normal
