Romania Central Bank Holds Key Interest Rates

(RTTNews) - Romania's central bank decided to hold its benchmark interest rates on Wednesday, citing elevated uncertainty from the Middle East conflict and domestic political challenges.

The board of the National Bank of Romania maintained its key policy rate at 6.50 percent, as widely expected.

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

The interest rates have been at the current level since August 2024.

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

"The NBR Board decisions aim to ensure and maintain price stability over the medium term, in a manner conducive to achieving sustainable economic growth," the bank said in a statement.

Inflation rose to 10.85 percent in May driven by the significant increases in natural gas, fuel and administered prices.

Meanwhile, economic activity stalled on a quarterly basis in the first quarter after registering a 1.9 percent contraction in the fourth quarter.