Some analysts believe Romania will further slash its key interest rate below 2%. It's very likely that Romania's National Bank (BNR) does this, after the European Central Bank's decided to inject EUR 1 trillion into the European market, believes Florin Catu, financial analyst and former director of the treasury within ING Bank Romania.

BNR will hold a monetary policy meeting at the beginning of February.

"I think the policy rate will go down. If BNR wants to reach the inflation target, it should reduce the rate. We might see zero or negative rates in Romania," said Catu, cited by local Ziarul Financiar.

Romanian National Bank slashes key rate to historic minimum, lowers Lombard interest.

editor@romania-insider.com