Romania central bank cuts rates to 4.0 percent

Reuters

BUCHAREST, Nov 5 (Reuters) - Romania's central bank cutinterest rates by 25 basis points to a record low of 4.00percent on Tuesday, taking advantage of a sharp decline ininflation to support economic recovery.

Tuesday's cut was the fourth consecutive this year and inline with consensus. Persistently high inflation had kept thecentral bank on hold for more than a year while its emergingEuropean peers lowered borrowing costs sharply.

But September inflation fell to 1.9 percent from August's3.7 percent. The central bank had forecast 2013 inflation at 3.1percent, within its 1.5-3.5 percent target range.

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