The yield of the local currency long-term government bonds issued by the Romanian Government has again risen on the secondary market over the past week, driven by capital outflows.

As a result, Romania's 10-year yield, the benchmark for the cost of financing across the economy (RO10Y), rose to 4.4%, the highest level since May 2020.

The Board of the National Bank of Romania (BNR) meets on Tuesday, October 5, at the regular monetary policy meeting.

The consensus forecast is that the central bank will keep the refinancing rate at current values (1.25%) and start the cycle of interest rate increases at the November meeting. It should also be noted that inflation is expected to have accelerated in September after an annual inflation rate of 5.3% in August, according to daily Bursa.

(Photo: Vinnstock/ Dreamstime)

andrei@romania-insider.com