BNR might lower key interest rate to 8.5 pc

The Central Bank (BNR) might lower the key interest to 8.5 pc in its money policy meeting today, against the background of a strong economic contraction, a disinflation trend and the stability of the national currency (leu) registered of late, consider the economic analysts, who also forecast the maintaining of minimal reserves, HotNews reports.

"Two weeks ago, Governor Mugur Isarescu said the economy adjusting is strong and it could become excessive. The latest statements would hint to a perception change and might be a signal for a more aggressive reduction in the August 4 meeting, but also for other decreases in the next money policy meetings," considers the senior economist of ING Bank Romania, Nicolae Alexandru Chidesciuc, who estimates the Central Bank will cut the key interest from 9 pc to 8.5 pc a year. In his opinion, BNR will bring the key interest to 8 pc by the end of this year.

The head of Volksbank Romania's research department, Melania Hancila estimates a decrease by 0.5 percent points of the monetary policy interest rate, against the background of a strong economic contraction and a disinflation trend, but she does not believe BNR will operate successive cuts of the key interest rate by this year's end. The chief economic of Banca Comerciala Romana (BCR), Lucian Anghel expects a reduction of the key interest rate to 8.5 pc and anticipates other reductions by the end of this year.

The Central Bank's Board has scheduled for today its sixth monetary policy meeting this year.

Romania's international reserves up to eur 29.540 bln

In July, Romania's international reserves rose to EUR 29.540 bln, from EUR 28.690 bln on June 30, 2009, Agerpres reported the National Bank of Romania (BNR) as announcing Monday.

Inflows totalled EUR 4.243 bln, made up of changes in the hard currency minimum mandatory reserves constituted by credit institutions, borrowings by the Finance Ministry, revenues from management of international reserves and others. Outflows came to EUR 3.383 bln.

BNR issues anniversary coin

The National Bank of Romania (BNR) will issue a silver coin dedicated to the 140th anniversary of the first railroad in Romania, which linked Bucharest to Giurgiu, Agerpres reports.

The silver coin, with a face value of RON 10, is round, weighs 31.103 grams, has 37 mm in diameter and has a jagged edge. According to BNR, 500 such coins will be put in circulation, at a sale price of RON 185 plus VAT. The coins will be sold with theme presentation brochures in Romanian, English and French.

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