BUCHAREST Aug 4 Romania's central bank cut its
benchmark interest rate by 25 basis points to a
record low of 3.25 percent on Monday, surprising the market,
helped by falling inflation.
It said in a statement it kept the minimum reserve
requirement on commercial banks' leu-denominated and hard
currency liabilities unchanged. The market had expected flat
rates at 3.50 percent.
The bank ended a rate-cutting cycle that has lowered
borrowing costs by 175 basis points in March 2014. It began
easing last year, later than its emerging European peers due to
persistently high inflation.
But with inflation hitting consecutive fresh lows, reaching
a record 0.7 percent in June, some investors said it could have
scope for more easing.
(Reporting by Radu Marinas)