Romania Central Bank cuts key rate to record low 3 percent

Romania’s central bank Tuesday cut its key monetary policy rate by 25 basis points to a record low 3 percent, in line with the analysts’ expectations, as inflation remains low while the country’s economy is back in recession following two consecutive quarters of GDP contraction.

The central bank lowered reserve requirements for RON deposits to 10 percent from 12 percent and maintained those for foreign-currency liabilities at 16 percent.

Governor Mugur Isarescu will hold a briefing at 3 p.m. in Bucharest.

The last time the financial institution applied a reduction to the key rate was in August this year, when BNR cut the key rate by 25 basis points, from 3.5 to 3.25 percent.

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