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Romania's central bank sees inflation fall sharply in the short-term

BUCHAREST, Nov 12 (Reuters) - Romania’s central bank expects inflation to fall to “markedly lower” levels than initially estimated in the short term before rebounding to around the mid-point of its 1.5-3.5% target range, it said in a statement on Thursday.

The bank also said latest data pointed to a more sizable rebound of economic activity in the third quarter than previously anticipated, although new restrictions imposed towards the end of the year would likely halt it.

Earlier in the day, the bank kept its benchmark interest rate unchanged at 1.50%, as expected, and cut the minimum reserve requirement for commercial banks’ hard currency liabilities to 5% from 6%. (Reporting by Luiza Ilie Editing by Gareth Jones)