Market News
Romanian central bank expects inflation surge and will keep rates on hold, governor says - REUTERS
BUCHAREST, Aug 12 (Reuters) - Romania's central bank nearly doubled its annual inflation forecast for this year on Tuesday, but it expects a return to target in 2026 and will keep interest rates steady for now, Governor Mugur Isarescu said.
The bank expects inflation to be running at 8.8% in December, compared with its previous forecast of 4.6% as tax hikes and higher electricity prices drive up prices.
Get a look at the day ahead in European and global markets with the Morning Bid Europe newsletter. Sign up here.
Inflation should peak at 9.6%-9.7% in September, the bank said, and it forecast the headline rate to then fall to 3.0% by the end of 2026, compared with the 3.4% previously expected.
