It was the second rate cut in 2015, after another 25-basis point reduction in January.
The central bank’s board also decided to narrow the symmetrical corridor of interest rates on the standing facilities around the policy rate to plus/minus 2 percentage points from plus/minus 2.25 percentage points.
“Thus, starting 5 February 2015, the interest rate on (the central bank’s) lending facility (Lombard) will be lowered to an annual 4.25% from 4.75%, while its deposit facility rate will remain at 0.25% per annum,” the bank said in a statement.
The bank kept its minimum requirement ratios at 14% for hard currency deposits and 10% for leu deposits.
Analysts largely expected a rate cut at today’s board meeting, the fifth reduction since August 2014, due to the subdued inflation outlook.
Romania’s inflation fell to 0.8% in 2014, the lowest level in 30 years, amid the declining trend of oil prices, a good farming output and still low demand on the domestic market.