Analysts surveyed by Economica.net reveal expectations for an interest rate hike at the monetary board of the National Bank of Romania (BNR), possibly of 50 bp to 2.25%, perhaps accompanied by further widening of the interest rate corridor that would push up further the Lombard interest rate. "We expect the National Bank of Romania to increase the key interest rate from 1.75% to 2.25%. We also anticipate the widening of the corridor formed by the interest rates of permanent facilities around the monetary policy interest rate to +/- 1.00 pp, from +/- 0.75 pp now," said Valentin Tataru, chief economist of ING Bank. Adrian Codarlasu, vice president of CFA Romania Association, believes that Poland hiking the rate by 50 bp this week to 2.25% sets grounds for an increase in Romania's monetary policy interest rate by 0.5% as well, compared to the initial expectations for 0.25 bp hike expressed by the Association. He also warned that the headline inflation might hit 10% YoY in May-June, judging from the factory-gate inflation of 32% (in November) recently announced. Ionut Dumitru, Raiffeisen Bank's chief economist, points out that Raiffeisen Bank's forecast envisages a policy interest rate of up to 2.5% by mid-2022 and 3% by the end of 2022. "We expect the BNR to catch up with colleagues in Central and Eastern Europe and offer a key rate hike of 50 bp to 2.25% at the next January 10 interest rate meeting. The excess liquidity after high public spending at the end of the year should support such a decision. The BNR should remain a net debtor to the banking system for the next two months," he explained.
Romanian prime minister Marcel Ciolacu said on Monday, February 24, that a "lasting peace" in Ukraine cannot be achieved without the involvement of the United States, and argued that Romania does not have to choose between it and the European Union. The statements come as the Trump administration is currently negotiating a resolution to the […]
Romania's acting president, Ilie Bolojan, has invited leaders of parliamentary parties to consultations on Wednesday, February 26, to prepare the country's stance for the extraordinary European Council meeting on March 6 in Brussels. The summit, convened by European Council president Antonio Costa,...
Roughly 40 searches took place in the Port of Constanța and other locations on Monday, February 24, in an investigation by the Anti-Corruption Directorate, or DNA, targeting influential local businessmen, former customs officials in the port, and one of the leaders of the Constanța branch of the governing Social Democratic Party (PSD). The prosecutors’ accusations […]
The Bucharest Community Foundation has announced funding for two new projects aimed at enhancing climate resilience in the Romanian capital by implementing sustainable ecological solutions to improve urban infrastructure and environmental quality. The projects were selected through the sixth round of the Environmental Platform for Bucharest initiative. Out of 16 eligible proposals, the jury chose […]
One of the hostages released on Saturday, February 22, by the terrorist organization Hamas also holds Romanian citizenship. The exchange took place before another setback in negotiations and exchanges. Hostages Tal Shoham and Avera Mengistu were released during a staged event in Rafah, and hostages Eliya Cohen, Omer Shem Tov, and Omer Wenkert were released […]
Polish company Scallier, who is expanding its network of Funshop Park retail parks in Romania, is set to open a new shopping center in the Arad region. The opening date for the roughly 10,000 sqm retail park is March 6. The decision to build a retail park in the Arad region in western Romania was […]
