Romania's Key Rate Cut Will Not Be Transmitted In Lending - Analysts

Most analysts exclude a direct influence on lending interest rates, adding rates may decline once foreign pressure eases.

Romania’s central bank Thursday lowered its main interest rate by 25 basis points to 5.75% a year, the second rate cut after a similar move in November, while keeping minimum requirements unchanged.

“The central bank’s decision was anticipated by the market and it did not have any impact on the (leu) exchange rate. The effects on the interest rates are compensated by the competition between banks for household and corporate savings. The central bank could stimulate a decrease in lending costs through a more relaxed monetary policy, but also by offering banks longer-term liquidity,” said Dan Bucsa, chief economist within UniCredit-Tiriac Bank.