The National Bank of Romania (NBR) held its monetary policy rate at 6.50% in August, citing high uncertainty as inflation remained elevated and economic activity weak, while forecasting a substantial inflation correction in the third quarter. The NBR has maintained the rate at 6.50% at every decision since August 2025. It kept the lending facility rate at 7.50%, the deposit facility rate at 5.50%, and minimum reserve requirement ratios on leu- and foreign currency-denominated liabilities unchanged. Annual inflation eased to 10.42% in June, and the NBR expects it to decline gradually after some fourth-quarter fluctuations and re-enter the target variation band at end-2027, supported by a widening aggregate demand deficit. Gross domestic product contracted year on year in the first quarter, while private-sector credit growth accelerated to 8.4% in June. The current account deficit continued to decline year on year in April-May, albeit more slowly, while the EUR/RON exchange rate remained at elevated levels. Risks stem from the Middle East conflict and energy crisis, crude oil prices, drought-related food and electricity prices, and uncertainty over further budget consolidation. The NBR said it remains ready to use its available tools to secure medium-term price stability while safeguarding financial stability.
National Bank of Romania2026-08-10
National Bank of Romania Holds Policy Rate at 6.50%
The National Bank of Romania (NBR) held its monetary policy rate at 6.50% amid elevated inflation, weak economic activity and high uncertainty, while forecasting a substantial inflation correction in the third quarter. The NBR expects inflation to re-enter its target variation band by end-2027 and kept its lending and deposit facility rates at 7.50% and 5.50%, respectively.