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Romania orders first rate increase in more than three years

Central bank adds 25 basis points as energy prices bite, while Moldova continues tightening

national bank of romania

The National Bank of Romania ordered a 25 basis point increase to the policy rate, taking it to 1.5%, on October 5. It marks the first change to interest rates since January, and the first increase since May 2018.

The central bank’s nine-member board also raised the deposit and Lombard rates by 25bp, to 1% and 2%, respectively. Reserve requirements are unchanged.

The NBR cited rising and above-target inflation in making its decision. It said inflation had reached 5.25% in August, up from 4.95%

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