Romanian MPC takes further rate cuts off the table

The National Bank of Romania pinned its decision to keep interest rates on hold earlier today (rather thancut them further) on concerns about contagion from the Greek crisis. And judging by the accompanyingpress release, the MPC seems to have taken the prospect of further rate cuts off the table for theforeseeable future. Equally, however, unless “Grexit” concerns were to lead to a sharp sell-off in the leu,which seems unlikely, we don’t think the MPC will be under pressure to raise rates any time soon.