Romania's Central Bank keeps key interest rate flat after political tensions, local currency volatility

The Romanian Central Bank (BNR) kept the key interest rate flat, at 5.25 percent after its monetary policy meeting on Wednesday (May 2 ), after having slashed the key rate for the last four monetary policy meetings.

The move was somehow expected by analysts, given the political uncertainties in the country, after the fall of the Ungureanu government last week. The stability of the country's currency the RON was also taken into account by BNR when deciding to keep the key rate at the same level.

The RON went down in the last couple of days, having reached a RON 4.42 per EUR rate on Wednesday on the money market. We wrote about this here.

BNR started decreasing the rate in November last year, when it was of 6.25 percent. In December 2009, the key policy rate was of 8 percent and gradually decreased throughout 2010. editor@romania-insider.com