"We expect the National bank of Romania (BNR) to keep the monetary policy interest rate unchanged at 6.75% at the January 10 board meeting," stated Ciprian Dascălu, chief economist of the largest Romanian financial group BCR, part of Austrian Erste Bank group, quoted by Ziarul Financiar.

Other analysts see a 25bp rate hike as more advisable. But an increase of 25bp would bring few benefits while being somewhat against the recent de facto relaxation of liquidity conditions, he argued.

In 2022, BNR increased the key interest rate 8 times, up to 6.75%, from 1.75% at the end of 2021, to fight the inflation that exceeded 16% y/y – the highest value in Romania in two decades.

iulian@romania-insider.com

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