Unchanged Interest Rates Not Enough To Ease Pressure On Romanian Leu: Danske Bank
November 04 2009 - 7:57AM
RTTF2
The Romanian central bank's decision on Tuesday to leave
interest rates unchanged at 8% may not be enough to ease the
pressure on the leu given the political uncertainties and the
negative environment in the region currently, Danske Research said
in a note. To leave the rate unchanged was the only option the NBR
had amid significant political uncertainties and the renewed
selling pressure on the leu, analysts noted. "If rates had been
cut, the leu would have come under further pressur," they said. "In
fact, despite a very weak economy, the NBR might be forced to hike
its key policy rate if the region's currency sell-off continues
and/or political uncertainties do not ease soon."
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