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CEE: Romania Keeps Key Rate Steady at 6.50% as Expected

CEE

Highlights from the policy statement:

  • According to the updated forecast, the annual inflation rate will fluctuate markedly in 2025 H1 – amid the two-way base effects that will be manifest over this time horizon –, before declining in H2 on a higher path than in the prior projection, staying above the variation band of the target until end-2025.
  • The NBR Board reiterates that, at the current juncture, the balanced macroeconomic policy mix and the implementation of structural reforms […] are of the essence in preserving a stable macroeconomic framework
  • Significant uncertainties are further associated with the growth rates of energy and food prices, as well as with the future path of crude oil prices, while notable risks come from the expansion trend of trade protectionism, potentially impacting other commodity prices and the prices of some intermediate and final goods.

Governor Mugur Isarescu will explain the decision on Monday, when he’ll also present fresh inflation projections. See the full policy statement here.

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Highlights from the policy statement:

  • According to the updated forecast, the annual inflation rate will fluctuate markedly in 2025 H1 – amid the two-way base effects that will be manifest over this time horizon –, before declining in H2 on a higher path than in the prior projection, staying above the variation band of the target until end-2025.
  • The NBR Board reiterates that, at the current juncture, the balanced macroeconomic policy mix and the implementation of structural reforms […] are of the essence in preserving a stable macroeconomic framework
  • Significant uncertainties are further associated with the growth rates of energy and food prices, as well as with the future path of crude oil prices, while notable risks come from the expansion trend of trade protectionism, potentially impacting other commodity prices and the prices of some intermediate and final goods.

Governor Mugur Isarescu will explain the decision on Monday, when he’ll also present fresh inflation projections. See the full policy statement here.