Romania slashes rates to record low | beyondbrics

Romania slashes rates to record low | beyondbrics:

"In recent weeks, much has been made of Romanians’ desire to leave their country and work abroad, partly due to the weakness of Romania’s own economy. On Wednesday, the country’s central bank made an ambitious move that may help that economy, the second poorest in the EU, by cutting rates to a record low and easing reserve requirements.

The National Bank of Romania (BNR) cut its key rate by 25 basis points to 3.75 per cent in the expectation that inflation – once a bugbear – would fall to its lowest-ever levels in the first half of this year. The bank also cut its minimum reserve requirement to 12 per cent for local currency and 18 per cent for foreign currency liabilities, from 15 and 20 per cent respectively. The move follows a recent review of a €4bn IMF deal which presages fiscal tightening in the 2014 budget."

'via Blog this'