Key interest rate slashed for the second time this year in Romania

Romania's key interest rate has lowered for a second time this year, to an again historic low of 3.5 percent, from the previous rate of 3.75 percent. This was decided in the Romanian Central Bank's BNR board meeting on Tuesday, February 4, and will become effective on February 5. The BNR has decided to maintain the existing levels of minimum reserve requirement ratios on both leu- and foreign currency-denominated liabilities of credit institutions. The BNR board also approved the quarterly Inflation Report, which will be released to the public in a press conference scheduled for February 6, 2014. Earlier in January, the BNR has cut the key interest rate, bringing it to an all time low, 3.75 percent, down from 4 percent. The BNR cut the interest rate four times in 2013. Earlier in 2013, BNR governor Mugur Isarescu said there was still room for extra rate cuts, after the 1.25 percentage points drop throughout 2013. editor@romania-insider.com