He said the central bank’s board considered lowering minimum reserve requirements at last week’s policy meeting, but kept the key rate unchanged at 1.75% a year and reserve ratios at 8% for deposits in Romanian lei and at 14% for foreign currency deposits. The lending rate and requirement ratios were last cut in May.
“We will likely remain cautious in terms of the key rate, even with negative inflation. We’re not ruling out further easing,” said Isarescu, adding there is room for easing particularly on the reserve ratio front, to bring requirements closer to the levels in Europe.