Romania Central Bank Keeps Rate Unchanged

(RTTNews) - Romania's central bank left its interest rate unchanged for the third straight time on Wednesday.

The board of the National Bank of Romania decided to maintain the monetary policy rate at 6.50 percent.

The bank also retained its lending facility rate at 7.50 percent and the deposit facility rate at 5.50 percent.

Furthermore, the board maintained the existing levels of minimum reserve requirement ratios on both leu- and foreign currency-denominated liabilities of credit institutions.

The new assessment reconfirmed the prospects for inflation declining in the first three months of 2025, but it will follow a higher-than-previously-anticipated path, the bank said. The bank also observed considerable uncertainties and risks stem from the future fiscal and income policy stance.

A combination of above-target inflation and a slow pace of fiscal consolidation argue in favor of a fairly limited easing cycle this year, Capital Economics' economist Liam Peach said. The economist expects 50bp of rate cuts in the second half of the year, to 6.00 percent.