The National Bank of Romania (NBR) kept its monetary policy rate at 6.50% and left the lending (Lombard) and deposit facility rates unchanged at 7.50% and 5.50%, respectively, citing very high uncertainty around the inflation outlook even as it expects inflation to ease later in the year amid longer-term disinflationary pressure from aggregate demand and budget correction. The NBR also maintained minimum reserve requirement ratios on leu- and foreign currency-denominated liabilities of credit institutions. Annual inflation rose to 10.85% in May, with adjusted CORE2 inflation also edging up, while economic activity stalled in 2026 Q1 after the prior quarter’s contraction and is seen recovering slightly in 2026 Q2; private sector credit growth picked up to 7.7% in May, driven by stronger foreign currency lending. On the external side, the trade and current account deficits continued to decline year on year but at a slower pace in April, while EUR/RON largely reversed its mid-quarter decline and USD/RON continued to trend upward. The NBR said the Middle East conflict, the global energy shock, and monetary policy decisions by the European Central Bank and the Federal Reserve remain relevant external risks, and reiterated that it is closely monitoring domestic and international developments and stands ready to use its tools to secure medium-term price stability while safeguarding financial stability.
National Bank of Romania2026-07-08
National Bank of Romania Holds Monetary Policy Rate at 6.50%
The National Bank of Romania left its monetary policy rate at 6.50%, the lending (Lombard) rate at 7.50%, the deposit facility rate at 5.50%, and minimum reserve requirement ratios on RON- and foreign currency-denominated liabilities unchanged, citing very high uncertainty around the inflation outlook despite expecting inflation to ease later in the year. It noted annual inflation rose to 10.85% in May, economic activity stalled in 2026 Q1, and external risks remain elevated, including the Middle East conflict, the global energy shock, and policy decisions by the European Central Bank and the Federal Reserve.