Romania: Central Bank cuts rate for the fourth consecutive time
March 29, 2012
At its 29 March meeting, the National Bank of Romania (NBR) cut the monetary policy rate by 25 basis points to a record low of 5.25%. The move marked the fourth consecutive rate cut and was widely expected by market analysts, as low inflationary pressures allow the Bank to stimulate economic activity, in particular after the economy contracted over the previous period in the final quarter of 2011. The Bank commented that indicators show a persistent negative output gap amid the moderating annual growth of industrial output and exports as well as given the increased uncertainties related to the European economic growth outlook.