Romania’s central bank (BNR) cut its key interest rate by 75 basis points yesterday, moving ahead with a gradual monetary easing to reflect slowing inflation.
The EU candidate’s central bank assessing the recent evolution of macroeconomic indicators, lowered its deposit rate to an annual 20 per cent from 20.75 per cent, following last month’s 50-basis-point cut, the first adjustment of the rate this year.
Romania’s inflation, one of the highest in the region, eased to a year-on-year 12 per cent in June from 12.3 per cent in May, and is officially targeted at 9.0 per cent in December.
“In real terms, the rate is high, offering portfolio investors quite nice returns of around 10 per cent,” said ING Barings Romania analyst Dan Baciu. A 50 basis points cut as early as next month is expected.
