Romania Interest Rate

The National Bank of Romania kept its benchmark interest rate at 6.5% in January of 2025, a third consecutive hold since pausing its cutting cycle at the level in August of 2024, and aligning with market expectations. The central bank noted that inflation has risen more than expected through the last quarter of 2024 due to higher fuel prices as a result of the significant appreciation of the US dollar. Consequently, the room for lower interest rates to support growth diminished. Still, the central bank noted that economic activity stalled in the third quarter, indicating that aggregate demand narrowed.