“We still have some room to reduce the rate, but not too much room,” Isarescu told a news brief after a monetary policy meeting.
He said the scope to reduce the minimum reserve requirements is larger.
The central bank earlier Tuesday cut its main lending rate by a quarter of a point to a record low of 4% a year, but kept the reserve requirements unchanged at 15% for Romanian-leu denominated liabilities and at 20% for foreign currency liabilities.
Since July, the bank reduced its key rate in four steps by 125 basis points.
The central bank’s chief said commercial lenders should continue to cut interest rates on loan-denominated loans.
“Although monetary policy transmission could have been faster, it’s better to have delays than to see banks cutting rates only to bring them back to their previous level or even increase them later,” Isarescu said.