Romania Central Bank Lowers Key Policy Rate As Expected

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Romania's central bank reduced its key policy rate by 50 basis points on Tuesday. The decision came in line with economists' expectations.

The Board of the National Bank of Romania lowered its key interest rate to 8% from 8.5%, with effect from September 30. The central bank had slashed its key policy rate by 50 basis points from 9% in the previous month.

But, the central bank decided to hold the minimum reserve requirements ratios on leu-denominated and foreign currency commercial deposits at 30%.

The National Bank also decided to ensure an adequate management of liquidity in the banking sector in order to consolidate monetary policy transmission channels.

Romania's gross domestic product or GDP decreased a seasonally adjusted 1.1% sequentially in the second quarter, after falling 4.6% in the first quarter.

The consumer price inflation eased to 4.96% in August from 5.06% in July. The central bank inflation target is 3.50% for 2009.

Romania's central bank reduced its key policy rate by 50 basis points on Tuesday. The decision came in line with economists' expectations. (Market News Provided by RTTNews)