Romania's recent key interest rate cut is “a bit of a gamble with the exchange rate”, but unlike, Hungary, the country has accepted the need to stay on good terms with the International Monetary Fund and the European Union, according to a recent blog post in the Financial Time's Beyond BRICS blog. “The National Bank of Romania has probably made the right call, given declining inflation and slowing growth,” writes Stefan Wagstyl for the FT.

But whether the country will be able to achieve the planned 2 percent economic growth this year very much depends on the developments in the eurozone, the country's biggest trade and finance partner.

“So, while the central bank in Bucharest is steering what looks like the right course, there’s not much it can do about the state of the choppy seas in which it finds itself,” FT concludes.

Read the full post here.

editor@romania-insider.com

(photo source: Photoxpress.com)