Romania’s central bank keeps policy rate at 6.5% and signals higher year-end inflation
The National Bank of Romania (BNR) maintained its monetary policy rate at 6.5% on October 8, as expected, while signalling higher short-term inflation due to the Middle East conflict and the effects of this year’s drought on agriculture.
iulian ernst · Journalist
· 2 min read
Over a longer horizon, however, the central bank sees “increasingly obvious underlying disinflationary pressures”, primarily from aggregate demand.
According to the BNR’s latest assessment, annual inflation is expected to follow an upward trajectory through the end of 2026, mainly due to anticipated increases in fuel, energy and other commodity prices, including agri-food products, amid the prolonged Middle East conflict and this year’s severe drought. Developments in the leu’s exchange rate are another source of inflationary pressure.
