world-economy

Romania Holds Rate at EU Peak as Stagflation Pressures Mount

Romania's central bank is expected to maintain its benchmark interest rate at 6.5 percent, the highest in the European Union. Policymakers are navigating conflicting economic headwinds as the National Bank of Romania holds steady on Friday, according to all economists in a Bloomberg survey. Rate decisions have remained unchanged for eighteen months as officials weigh the challenge of managing double-digit inflation alongside a deepening recession. Currency weakness stemming from capital outflows has complicated the policy picture, driven by renewed political instability in the country. The stagflation environment leaves central bankers with limited room to maneuver, caught between inflation control and economic contraction concerns.