“The central bank has cut its monetary policy rate twice in as many months, but it takes a few months for the market to react. We estimate a decline in interest rates on leu-denominated loans,” Olteanu said.
However, domestic lending depends very much on consumer confidence and on economic growth, and it could be negatively affected by a new wave of recessions in the eurozone, the central bank official added.
“We’ll continue to push for loans in domestic currency instead of euro-denominated loans. Trust is a key factor when it comes to lending revival and so is the evolution of the global economy,” Olteanu said.
The official said the central bank is optimistic about Romania’s economic growth in 2012, barring worsening conditions in international markets.
Early February, the central bank reduced its key rate by a quarter of a point to a record low of 5.5% a year, in a move to boost lending and stimulate economic recovery. It was the second rate cut this year and the third one in the past four months.