Speaking at a press conference after the presentation of the bank’s quarterly inflation report, Isarescu said the central bank will use all available tools to lower interest rates in the banking system, including cutting the monetary policy rate, ensuring market liquidity and narrowing the variation corridor of interbank rates.
The central bank’s chief said leu-denominated loans are preferable because consumers may easily avoid currency exchange risks, even if domestic currency loans are by 30% more expensive.
The central bank Monday lowered its main monetary policy rate for the second straight meeting by 50 basis points to a record low of 4.5% a year, exceeding expectations of a 25 basis points cut.
Isarescu expressed hope that the lower monetary policy rate would translate into cheaper loans for local consumers as early as September.