BNR slashes key interest rate to 3.25 percent

The central bank announced on Monday it lowered its monetary policy rate by a quarter of a point to 3.25 percent.

“In its meeting on August 4 2014, the BNR board decided to cut the key interest rate to 3.25 percent per year from 3.50 percent starting with August 5 2014”, according to a press release from the financial institution.

The bank also maintained its minimum reserve requirements unchanged at the Friday meeting, as interbank liquidity remains high. The minimum requirements were kept at 12 percent for Romanian-leu denominated liabilities and at 18 percent for foreign currency liabilities.

BNR lowered the key rate to a record low of 3.5 percent in February 2014.

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