The National Bank of Romania kept its monetary policy rate at 6.50% as it weighed still-elevated inflation against weak activity and expectations that price growth will fall later in the year. It left the lending (Lombard) facility rate at 7.50%, the deposit facility rate at 5.50%, and maintained existing minimum reserve requirement ratios on leu- and foreign currency-denominated liabilities of credit institutions. Annual CPI inflation rose to 10.85% in May, driven mainly by natural gas, fuel and administered prices and higher rents, while adjusted CORE2 inflation edged up to 8.5%; the central bank said output stalled in 2026 Q1 after the previous quarter’s contraction and pointed to a slight recovery in 2026 Q2, with private-sector credit growth accelerating to 7.7% in May. The current account deficit declined faster year on year in 2026 Q1 but at a slower pace early in Q2, while EUR/RON largely reversed its mid-quarter decline and USD/RON resumed an upward path. The central bank cited the Middle East conflict, the global energy shock, uncertainty over further budget consolidation, and decisions by the European Central Bank and the Fed as key risks, and said inflation should ease slightly in June before a substantial decline in 2026 Q3, while standing ready to use its tools to achieve medium-term price stability and safeguard financial stability.
Central Bank of Poland2026-07-08
National Bank of Romania Holds Policy Rate at 6.50%
The National Bank of Romania kept its monetary policy rate at 6.50%, with the lending facility rate at 7.50%, the deposit facility rate at 5.50%, and minimum reserve requirement ratios unchanged, as it balanced still-elevated inflation against weak activity and expectations of a later decline in price growth. It said annual CPI inflation rose to 10.85% in May and flagged risks from the Middle East conflict, the global energy shock, budget consolidation uncertainty, and European Central Bank and Federal Reserve decisions, while expecting inflation to ease slightly in June and decline substantially in 2026 Q3.