Analysts expect key interest rate reduction in Romania

The Romanian Central Bank BNR could further slash its key interest rate by 0.25pp on Tuesday, to 3%, according to analysts quoted by Mediafax newswire. Meanwhile, minimum mandatory reserves could stay the same, 12% for RON and 16% for foreign currencies. The latest cut in the key interest rate was in August, down to 3.25%, from 3.5%. Analysts expect further decreases in the rate in October and in November, going down to 2.75% by the end of the year. In August, the BNR reduced its inflation forecast to 2.2% for this year, from a previous estimation of 3.3%, and to 3% for 2015, from a previous forecast of 3.3%. Source: romania-insider.comTags: ,