Romania's central bank on Thursday decided to keep its policy interest rate unchanged for the third time in a row as concerns of economic downturn were offset by a record weakening of the leu. The decision was in line with economists' expectations.
The monetary policy council of the National Bank of Romania maintained the key interest rate at 5.25 percent. The bank also 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. Those were part of a series of four cuts which were carried out to support the leu after it fell to a record low as the country plunged into one of the worst political turmoils in its history.
The Romanian economy contracted modestly in the first quarter. Gross domestic product dropped 0.1 percent sequentially, after falling 0.2 percent in the fourth quarter. Year-on-year, GDP increased 0.3 percent.
by RTT Staff Writer
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