Romania's Central Bank Keeps Rates Unchanged, as Expected

11:55 AM EDT, 07/08/2025 (MT Newswires) -- Romania's central bank (NBR) on Tuesday said its Board decided to keep the monetary policy rate at 6.50%, as expected.

The Board also left unchanged the lending (Lombard) facility rate at 7.50% and the deposit facility rate at 5.50%.

According to current assessments, the annual inflation rate will pick up considerably in the following months, under the transitory impact of the expiry of the electricity price capping scheme and the increase in VAT (sales tax) rates and excise duties starting Aug. 1, so climbing well above the values indicated by the May 2025 forecast over the short time horizon, wrote NBR in its policy statement.

However, the package of fiscal and budgetary measures to be implemented starting August is, overall, likely to entail stronger underlying disinflationary pressures over the longer horizon, mainly via the effects exerted on aggregate demand, and to support a relatively swift and hefty correction of the current account deficit, with favorable implications for the economy's financing costs and for the behavior of the leu's exchange rate, also in the period ahead.

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