Romania Set to Deliver First Cut in Three Years.

NATIONAL Bank of Romania ; BLOOMBERG LP 942270000

Romania is expected to deliver its first interest-rate cut in three years due to a slowdown in inflation. Economists predict that the National Bank of Romania will reduce the key rate from 7% to 6.75%. However, the central bank remains cautious as Romania faces high inflation rates and a budget deficit. Inflation has decreased more than anticipated, but the central bank still expects it to remain above the target range until 2025. Other countries in the region, such as Poland, Hungary, and the Czech Republic, have already implemented multiple interest-rate cuts. Romania is concerned about fiscal risks, particularly the possibility of tax increases after this year's elections. [Extracted from the article]

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