Unchanged Interest Rates Not Enough To Ease Pressure On Romanian Leu: Danske Bank

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."