Romania’s Central Bank maintains key interest rate at 6.25% for May

The Romanian Central Bank (BNR) has decided to keep the key interest rate at 6.25 percent in May, as expected by analysts. A survey for March expected to maintain the key interest rate to 6.25 percent, while the estimates for the end of 2011 vary between 5.50 percent and 6.75 percent. Also, the Financial-Banking Analyst Association in Romania members who responded to the survey expect the monetary policy rate to fall to 6 percent at the end of 2012. Most respondents believed that the reserve requirement for foreign currency liabilities will remain at 20 percent by the end of 2011 and will drop to 15 percent at the end of 2012. BNR cut the rate from 6.5 percent to 6.25 percent in May last year. In December 2009, the key policy rate was of 8 percent and was gradually decreased throughout 2010. Irina Popescu, irina.popescu@romania-insider.com