BNR cuts key rate to 6.5 pct per year

Romania's National Bank (BNR) has decided on Monday to cut again its key monetary policy rate to 6.5 percent per year, down from 7 percent previously, applicable starting on March 30.

The Central Bank is seeking to influence a cut in the commercial banks interest rates on the market, but few of them have followed the downward movement of interest rates so far.

The Board also decided to keep the current levels of the minimal mandatory reserve rates applicable to the leu- and forex liabilities of the lending institutions.

"BNR will continue to closely monitor the domestic economic developments and the developments of the global economic environment so as to ensure - by the adjustment of the instruments it has available - that the price stability and financial stability goals are attained in the context of the country meeting its pledges as established through its accords with the European Union, the International Monetary Fund and other international financial institutions", informs a BNR release.

AGERPRES