Romania cbank cuts rates 50 bps to 7 pct, as fcast

BUCHAREST, Feb 3 (Reuters) - Romania's central bank cut its benchmark rate by 50 basis points to 7 percent on Wednesday, in line with market expectations, in a move to stimulate the struggling emerging economy.

Ten out of 16 analysts polled by Reuters last week saw the central bank slashing rates by half a percent. Five expected a quarter point cut and one forecast a bolder 75 basis point reduction.

The bank has also taken advantage of improved market sentiment towards Romania, which unlocked a 20 billion euro financial aid deal led by the International Monetary Fund that had been frozen last year due to a prolonged political crisis.

Romanian rates remain the highest in the European Union, compared with Hungary's 6 percent, Poland's 3.5 percent and the Czech Republic's 1 percent.

(Reporting by Marius Zaharia; Editing by Michael Winfrey) ([e-mail] ; [phone]; Reuters Messaging: [e-mail] ) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.