Romania raises rates by 100 basis points

The National Bank of Romania surprised markets on Monday by raising its benchmark rate a full percentage point to 9%.

Analysts expected a rate rise, but not of this magnitude, largely predicting the central bank would tighten by half a point.

Annual inflation rose to 6.5% in December 2007, way above the 5% upper limit of the central bank's target band, as a result of rising global oil and food prices coupled with the poor performance of the Romanian farming industry, strong wage increases and