“We believe the NBR is likely to carry out an additional easing of 125bp during the remainder of this year, bringing its policy rate to 6.25% by the end of 2010. The Bank is inclined to carry out its policy easing in a frontloaded manner to take advantage of the recent positive developments, given the potential longer-term concerns regarding political stability and the absence of strong signs of a sustained economic recovery. The degree of NBR’s aggressiveness will be shaped by the implementation of the IMF program, political stability and exchange rate developments”, Citi said.

In its first rate-setting session of 2010, on January 5, the National Bank of Romania cut the monetary policy rate by 50basis points to the lowest level since early 2008 – 7.5%.