* Romania cbank cuts rates by 50 bps to 9.0 percent
* Minimum reserve requirements cut by 3-5 percent points
* More rate cuts seen as economy hit by global crisis
(adds central bank statement)
By Marius Zaharia
BUCHAREST, June 30 (Reuters) - Romania's central bank cut interest rates by 50 basis points to 9.0 percent on Tuesday and lowered reserve requirements for banks in an effort to revive lending and lift the economy out of recession.
Most analysts expect further easing this year with the economy seen shrinking by as much as 4 percent due to a shortage of cash and a collapse in global demand.
Elsewhere in eastern Europe more rate cuts are also on the cards as economic data show the pain has yet to fade, while an improvement in global risk appetite in recent months has helped regional currencies to recover from record lows.
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 the Czech Republic's 1.5 percent.
The bank cut the minimum reserve requirement on leu liabilities with maturities of less than two years by 300 basis points to 15 percent, and to 35 percent from 40 percent on hard currency.
It said lower inflation, a "significant slowdown" in credit to the private sector and a faster than expected decline in Romania's current account deficit necessitated a rate cut to meet its medium-term price growth goals.
Its other target, it said, was "a sustainable revival of the lending process."
PLUNGING INDUSTRY
Battered by global woes, the economy contracted by 6.2 percent on the year in January-March, while inflation slowed to 6 percent in May, from 6.5 percent in April.
Many manufacturers have cut production and jobs, sending unemployment to three-year highs in May. On Tuesday, state-owned freight railway company CFR Marfa was discussing whether to temporarily lay off 40 percent of its staff of 17,000.
Top companies in Romania, such as oil and gas group Petrom expect economic conditions to get worse before they get better.
Economists said the cuts would help inject the economy with some cash, but said the central bank was maintaining its cautious approach to monetary relaxation due to concerns over inflation and future financial stability.
"We should continue to expect prudent relaxation," said Nicolaie Alexandru-Chidesciuc, chief economist at ING Bank in Bucharest.
The leu rose slightly after the rate decision, hitting session highs of 4.2050 per euro, before shedding gains later in the session. (Reporting by Marius Zaharia and Luiza Ilie; Editing by Chris Pizzey)