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.
Romanian deep-tech startup .lumen, the developer of what it says are the world’s first AI-powered glasses for the blind, has secured a new investment from EIT Urban Mobility, the European innovation community focused on advancing sustainable and inclusive urban mobility solutions. The value of the new funding round was not disclosed. The investment aligns with […]
The health spending per capita in Romania was the lowest in the EU, with spending less than half the EU average in 2023, the recently released report, State of Health in the EU - Romania Country Health Profile 2025, shows. At the same time, life expectancy in Romania is 5.1 years below the EU average, […]
Romania’s annual inflation rate stood at roughly 9.8% in November 2025, similar to October, according to data published by the National Institute of Statistics (INS). Food prices increased by 7.6% last month, while services rose roughly 11% and non-food goods climbed 10.7%. The consumer price index rose by 0.42% in November compared with October, while […]
Three French soldiers deployed in Romania as part of NATO’s Multinational Battle Group at Cincu intervened to save a truck driver following a serious traffic accident on the A3 Bucharest–Ploiești motorway, the Romanian Ministry of Defense said. The incident occurred earlier this week as the soldiers were traveling toward Ploiești and witnessed the truck crash...
Eight contemporary art galleries will present the works of the artists they represent at the third edition of the Smallest Art Fair in Town, an event dedicated to works on paper. This edition showcases works “investigating the state of wandering, disorientation, and rediscovery in the face of uncertainty.” Under the title In Dark Woods, A […]
Parents everywhere are asking an important question: What skills will truly prepare a child for a world defined by rapid change, global uncertainty, and the rise of artificial intelligence? For decades, schools focused entirely on academics. Today, research from neuroscience, performance psychology, and leading universities shows a different reality: The students who thrive long-term are […]
