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Romanian Central Bank Raises Rates by 25bps, Below the 50bps Hike Forecast

CEE
  • The Romanian central bank raise rates by 25bps to 1.75% - shy of expectations of a 50bps hike to 2.00%.
  • The central bank warn that their updated forecasts show significant additional worsening of their inflation outlook almost throughout the projection horizon, and that the annual inflation rate is expected to remain on a steep uptrend toward the midpoint of 2022. They add that this will return to the target band in Q3 2023.
  • EURRON rises just above unchanged on the day, narrowing the gap with the morning's highs at 4.9502 following the decision.

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