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Romanian Central Bank Cuts Interest Rate For Fourth Time

3/29/2012 6:29 AM ET

Romania's central bank on Thursday decided to reduce its benchmark interest for the fourth time in a row, to support economic recovery amid the deepening debt crisis in the euro area. The decision was in line with economists' expectations.

The monetary policy council of the National Bank of Romania slashed the benchmark interest rate to 5.25 percent from 5.5 percent. The bank, meanwhile, decided to maintain the current levels of minimum reserve requirement ratios in domestic and foreign credit institutions.

In February, the central bank had cut the interest rate by a quarter percent, after reducing it by 25 basis points each in January and November last year.

Romania's consumer price inflation eased to 2.59 percent in February from 2.72 percent in January. The economy contracted 0.2 percent sequentially in the fourth quarter, while in the whole of 2011, GDP grew 2.5 percent.

by RTT Staff Writer

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