Romania has cut its interest rate to eight per cent - the lowest level for more than a year and a half.
The Banca Nationala a Romaniei lowered its monetary policy rate by half a percentage point as it looks to combat the impact of the recession.
It is the fifth time the bank has made a cut since February and was widely expected.
In an email to Bloomberg, Raffaella Tenconi, chief economist at Wood & Co, said: "The decision is as expected, so no real surprise at this stage."
However, the country is currently in political turmoil with its coalition government facing a number of challenges, not least the sacking of the former social democrat minister Dan Nica.
The move was made by prime minister Emil Boc, a democratic liberal, after Mr Nica made comments about potential fraud in November's presidential elections.
Recently, Mugur Isarescu, governor of the Romanian National Bank, told Financialrul.ro that the country is now on the road to economic recovery.
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