Speaking at a news conference after a monetary policy meeting, Isarescu said the central bank’s decision to cut its main rate should send a positive signal in the market.
“There is still a large scope for lower interest rates on leu-denominated loans and it’s in the banks interest to cut the rates as soon as possible,” Isarescu said.
The central bank earlier Monday lowered its key lending rate for the second straight meeting by 50 basis points to a fresh record low of 4.5% a year, exceeding expectations of a 25 basis points cut.
The lower rate will be of “great help” to Romanians who plan to use the First Home credit facility to buy a house, considering that the government-subsidized program is now available exclusively in local currency.