Romania meets inflation spike with rate hike
Central bank adds 75bp to policy rate as inflation passes 10% mark and economy sputters
The board of the National Bank of Romania raised the policy rate by 75 basis points to 3.75% on May 10, citing sharply rising inflation readings. The hike is the sixth since October 2021, when the rate stood at 1.25%.
The central bank said headline inflation reached 10.2% in March, up from 8.5%, due to higher food and fuel costs amid the Russia-Ukraine war and sanctions. Core inflation was 7.1%.
The NBR maintains a 2.5% target, with a tolerance band of 1% in either direction. Romania’s
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