In the earlier rate-setting meeting, the central bank has also reduced the reserve requirements ratio for foreign currency-denominated liabilities with residual maturities of up to two years to 30 percent from 35 percent starting with the August 24-September 23, 2009 maintenance period.

Analysts polled by Wall-Street expected the national bank would keep the reserve requirements at its previous level of 15% for leu-denominated liabilities and at 35% for fx-denominated liabilities.

NBR has also decided to actively use open-market operations in order to ensure an adequate management of liquidity in the banking system and reduce to one week from one month the maturity of its main monetary policy instrument, the repo operations via auctions.

Lucian Anghel, senior economist of BCR said he expected the further cuts in the benchmark rate for the remainder of the year.