The recent and near-term decrease in the annual inflation rate on a significantly lower trajectory than previously anticipated and the still high uncertainties associated with developments in the more distant time horizon justify a prudent reduction in the monetary policy interest rate, appreciated the members of the Board of Directors of the National Bank of Romania, according to the Minutes of the monetary policy meeting of July 5.The members of the Board highlighted the increased uncertainties and risks arising from the conduct of fiscal and revenue policy in 2024, against the background of the budget execution from the first five months of the year, as well as the dynamics of salaries in the public sector and the full impact of the new pension law . The great risks associated with the conduct of these policies on a more distant time horizon were also evoked, in the context of the fiscal and budgetary measures that could be implemented in order to achieve the fiscal correction and position the budget deficit on a sustainable decreasing trajectory compatible with the requirements of the procedure of excessive deficit and with the conditions attached to other agreements concluded with the EC, underlines the Minutes published by the central bank on Wednesday.Regarding the near-term perspective, the members of the BNR Board of Directors showed that, according to recent data and analyses, the annual inflation rate will continue to decrease in the coming months on a significantly lower trajectory than the one highlighted in the medium-term forecast of May 2024 , which dropped to 4.9% in December 2024, to 3.5% in the last month of 2025 and to 3.4% at the end of the projection horizon.The document draws attention to the fact that there are significant uncertainties regarding the prospective impact on natural gas and electricity prices of the legislative changes applied in April, as well as regarding the future evolution of the quotation of coal and other raw materials, especially in the context geopolitical tensions.The Board of Directors of the BNR unanimously decided, at the beginning of July, to reduce the monetary policy interest rate to 6.75%, from 7%. At the same time, it decided to reduce the interest rate for the credit facility (Lombard) to 7.75%, from 8%, and the interest rate related to the deposit facility to 5.75%, from 6%. Also, the Board of Directors of the BNR unanimously decided to maintain the current levels of the mandatory minimum reserve ratios for the liabilities in RON and in foreign currency of the credit institutions.
A new CURS poll published on Sunday, June 29, shows that if local elections were held in Bucharest next Sunday, reformist party USR would obtain 27%, followed by the Social Democratic Party (PSD) with 22%, and far-right party Alliance for the Union of Romanians (AUR) with 18%. The National Liberal Party (PNL) comes in fourth, […]
Last week, the European Public Prosecutor’s Office (EPPO) in Bucharest indicted three individuals for an EUR 100 million fraud in a case involving both EU and national funds. Among those indicted is an Italian citizen, alleged to be the leader of the group, which operated between 2019 and 2024. The suspect was detained on February […]
The number of building permits for residential buildings increased by 0.6% in the first five months of 2025 compared to the same period in 2024, with 14,134 such permits issued, according to data published Monday by the National Institute of Statistics. Increases were recorded in the Western region (+166 permits), Center (+70), North-West (+68), South-East […]
Cluj-Napoca, a major city in Romania’s Transylvania region, is taking a step toward becoming a more animal-friendly city, as a new proposal allowing pets in public institutions has been opened for public debate. Mayor Emil Boc announced the initiative, stating, “A city that is friendly to animals is a better city for people.” The draft […]
The president of S.O.S. Romania, Diana Iovanovici Șoșoacă, announced on Monday, June 30, that three senators were expelled from the party, effectively disbanding the party’s group in the Senate. According to the Romanian Parliament’s regulations, a party must have more than seven members to establish a group in the Senate. With the expulsion of the […]
Chinese social media platform TikTok has reportedly opened a branch in Romania, following public criticism, along with governmental and EU-level scrutiny, after Romania’s last presidential elections. The local company is called Tik Tok Romania, has a share capital of RON 5,000, and provides other IT-related service activities. It will be managed by Laura Andreea Savu, […]
