Analysts expect Romania’s Central Bank to further slash key interest rate

The Romanian Central Bank (BNR) might take advantage of the slowing inflation rate and cut the key interest rate from 6 percent to 5.75 percent, despite the risks of the Eurozone crisis, according to analysts quoted by Mediafax newswire.

The analysts expect BNR to continue to reduce the key interest rate to 5.5 percent until end-2012. BNR reduced the key interest rate from 6.25 percent to 6 percent in November 2011. Romania was the first of the EU emerging countries to cut the key interest rate in May 2010, from 6.5 percent to 6.25 percent, in order to foster the economic recovery. In December 2009, the key policy rate was of 8 percent and was gradually decreased throughout 2010. Irina Popescu, irina.popescu@romania-insider.com