The National Bank of Romania held its policy rate at 6.50% amid renewed inflation pressures and high uncertainty over the economic outlook, extending the unchanged stance recorded since November 2025. The central bank also retained the lending facility rate at 7.50%, the deposit facility rate at 5.50% and existing reserve requirement ratios on domestic- and foreign-currency liabilities. Annual inflation rose to 6.94% in October 2026, mainly reflecting further fuel price increases. The central bank projects a slight further rise in the final months of 2026 before inflation gradually declines and returns to its target band in the first quarter of 2028, supported by disinflationary base effects and weak aggregate demand. Economic activity stagnated in the second quarter of 2026, while recent indicators point to a moderate recovery over the second half, partly supported by agriculture. Private-sector credit growth remained at 8.2% year-on-year in September. The current account deficit widened year-on-year over the first eight months of 2026, reversing the improvement recorded in the first half. The Middle East conflict and energy crisis remained significant risks to growth, inflation and financing costs. The central bank reiterated its readiness to use available instruments to secure medium-term price stability while safeguarding financial stability.
National Bank of Romania Holds Policy Rate at 6.50%
The National Bank of Romania held its policy rate at 6.50%, lending and deposit facility rates at 7.50% and 5.50%, respectively, and reserve requirement ratios unchanged. Annual inflation rose to 6.94% in October 2026 and is projected to increase slightly further before gradually declining and returning to the target band in the first quarter of 2028.