Pundits expect further drop in monetary policy interest rate

Financial analysts expect the Romanian Central Bank (BNR) to further slash the key interest rate to 7 percent in its administration council meeting scheduled for today, according to the Association of Financial Analysts in Romania (AAFBR). The association also estimates BNR will cut the mandatory minimum reserves in foreign currency by up to five percent, while keeping the same level of minimum mandatory reserves for Romanian currency. The current key interest rate was set by the BNR at 7.5 percent. AAFBR’s estimations are based on a poll made among its members. AAFBR is a professional association established in January 2008, which reunites over 50 analysts in the banking, insurance, pension funds, investments administrations firms and capital market analysts.