The National Bank of Romania today released its inflation report that explained its detailed thinking behind a relatively large 50-basis point cut in interest rates on Monday – and suggested the policy interest rate still has further to fall.

The central bank initially cut rates by 25bp in July bringing the benchmark rate to 5% – its first rate cut since March 2012 – and followed this up at the start of this week with a further cut to 4.50%. The benchmark rate is now close to a record low after