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Romanian cbank cuts rates by 50 bps to 9 pct

Published 06/30/2009, 05:58 AM
Updated 06/30/2009, 06:04 AM

BUCHAREST, June 30 (Reuters) - Romania's central bank cut its key interest rate by 50 basis points to 9 percent on Tuesday, the third cut so far this year, in its effort to revive lending and lift the economy out of recession.

It also lowered the minimum reserve requirements by 3-5 percentage points.

Nine of the 14 analysts polled by Reuters earlier this month saw a 50 basis point cut in the benchmark rate.

The move brings Romania's interest rates below Hungary's, which stand at 9.5 percent, but keeps them well above Poland's 3.5 percent and Czech Republic's 1.5 percent.

Analysts expect more rate cuts in the region as economic data worsens, while an improvement in risk appetite in recent months has helped currencies recover from record lows hit in the first months of this year. (Reporting by Marius Zaharia; Editing by Justyna Pawlak)

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