Romanian MPC hints at rate cuts, but spooked by Greece

The National Bank of Romania’s Governor, MugurIsarescu, struck a dovish note at this afternoon’s press conference, which suggests that the interest rate cut earlier today to a fresh record low of 2.50% is unlikely to be the last in the easing cycle. We have now pencilled in a couple more 25bp rate cuts for this year. But the MPC appears to have been spooked by the latest developments in Greece and any sign of contagion to Romania’s financial markets would bring the easing cycle to a halt