Romania’s interest rate is now at its lowest since 2007, at 7%, as the Romanian central bank reduced its main interest rate by -0.5% in the first week of February 2010 in an attempt to revive the countrys ailing economy.

This is the second time it has cut its rates in 2010 having reduced them from 8 to 7.5% in January.

Chairman of the Romanian Banks Association, Radu Ghetea, told Realitatea TV that he expected private banks would decrease their interest rates as a result.

The Romania economy contracted by -7% in 2009 after three years of +8% growth and has been mired in a deep recession.