Romania cuts interest rate to record low

FXStreet (Mumbai) - Romania joined the global central banker’s interest rate cut party today after it reduced borrowing costs to a record low in order to revive inflation.

The Central bank reduced interest rate cut to 2.25% from 2.5% in response to consumer price inflation decelerating throughout the last quarter of 2014 on falling energy costs. Meanwhile, the bank held reserve requirements for leu deposits at 10% and those for foreign-currency liabilities at 14%.

Moreover, the European Central Bank’s expansion of stimulus program last month has triggered a wave of interest rate cuts across Europe.