BNR cuts key rate to 9.50 pc

The Romanian National Bank's (BNR) Board of Directors decided on Wednesday to cut the key rate to 9.5 percent from 10.0 percent per annum, starting May 7.

It also decided to use actively the market operations with a view to appropriately managing the banking system's liquidities and keeping the rate of the mandatory minimal reserves applicable to the national leu currency liabilities as well as to the forex liabilities belonging to the crediting institutions, the BNR said in a release.

Through the decision the BNR Board of Directors made on March 31, 2009, the mandatory minimal reserves rate will be zero for the forex liabilities having the residual maturity longer than two years, with such a decision to be for the first time applicable over May 24-June 23, 2009.

Agerpres