“The central bank has given the signal for lower loan rates. Considering that interbank rates have stayed below 5.25% a year (the central bank’s key lending rate until Monday –e.n.) for several months now, I think the transmission should take place rather quickly,” Governor Mugur Isarescu told a news brief after the bank’s monetary policy meeting.
He said commercial banks could cut lending rates starting with this summer.
The central bank earlier Monday lowered its main monetary policy rate by 25 basis points to a record low of 5% a year, the first rate cut in 15 months.
“The decision sought to firmly anchor inflationary expectations, consolidate the transmission of the monetary policy drive and increase confidence in the economic performance as the country has accomplished the agreements signed with the international financial institutions,” the central bank said.