ING analysts stress that, given the central bank’s ability to keep exchange rates under control, a rate cut higher than 0.5bp wouldn’t have a major impact on the local currency.

As the National Bank of Romania keeps the interest rates at some of the highest levels in the region, ING analysts expect a further monetary easing in the following sessions so as to bring the rates below 7% in the first half 2010 from 10.25% at the beginning of the year.

For the first half 2010, ING Bank Romania forecasts a monetary policy rate of 6.75%.