Romania Interest Rate

The National Bank of Romania kept its benchmark rate at 6.5% in November 2024, marking the second consecutive hold, in line with expectations. September's annual inflation rate dropped to 4.6%, down from 5.1% in August, primarily due to lower fuel and energy prices. In Q3 2024, inflation continued its gradual decline, although at a slower rate than prior quarters and forecasts. Meanwhile, the latest forecast suggests inflation may edge up late this year and fluctuate in early 2025, driven by base effects, the severe drought, and rising commodity prices, especially impacting food and energy. However, inflation is expected to gradually decline, potentially moving below the target range in early 2026. As for economic growth, revised data show GDP growth of 0.3% in Q2 2024 after a 0.4% decline in Q1, with annual growth at 0.9%, driven by household consumption despite slowing investment and weak net exports.