The Romanian Central Bank (BNR) made a further reduction of the key interest rate to 5.5 percent during its most recent monetary policy meeting, after cutting the rate from 6 to 5.75 percent at the beginning of January.

The BNR decided to maintain the existing levels of minimum reserve requirement ratios on both leu-denominated and foreign currency-denominated liabilities of credit institutions.

BNR reduced the key interest rate from 6.25 percent to 6 percent in November 2011. Romania was the first of the emerging EU countries to cut the key interest rate in May 2010, from 6.5 percent to 6.25 percent, in order to stimulate economic recovery. In December 2009, the key policy rate was of 8 percent and gradually decreased throughout 2010.

Corina Saceanu, corina@romania-insider.com

(photo source: Romania-Insider.com)