Romania's central bank on Thursday kept its benchmark interest rate unchanged, after reducing it in each of the previous four rate-setting sessions. Economists were looking for a quarter percent reduction at the latest meeting.
The monetary policy council of the National Bank of Romania maintained the key interest rate at 5.25 percent. The bank, meanwhile, decided to maintain the current levels of minimum reserve requirement ratios in domestic and foreign credit institutions.
The last time the central bank cut the rate was in March when it slashed the key rate by 25 basis points, following a similar reduction in February. The series of cuts were carried out in order to support the leu after it fell to a record low amid political turmoil.
Romania's annual inflation slowed to 2.40 percent in March from 2.59 percent in February. The economy contracted 0.2 percent sequentially in the fourth quarter. In the whole of 2011, GDP grew 2.5 percent.
by RTT Staff Writer
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