Romania’s National Bank (BNR) could reduce the monetary policy interest rate by 0.25 percentage points, on Tuesday, November 4, to a new all-time low of 2.75%, according to the Association of Financial-Banking Analysts in Romania (AAFBR).

The local analysts expect the monetary easing to continue in December with another rate cut, to 2.5%. They also expect the BNR to further reduce the minimum required reserves for local banks and thus free more liquidity for lending.

Romania’s central bank has already reduced the monetary policy interest rate four times this year, bringing it down from 4% to 3%. The most recent cut was in September.

Romanian Prime Minister Victor Ponta said last week that the BNR will further cut interest rates.

editor@romania-insider.com