The National Bank of Romania reduced interest rates from 7.5% to 7% on Tuesday although the latest inflation figure was almost a quarter point above the upper bound of its target range.

Justifying its decision, the central bank said the price rises were temporary and that the trend was one of disinflation. "The outlook indicates the continuation of disinflation despite a temporary pick-up in inflation in January under the impact of the exogenous shock coming from excise duties on tobacco, as the