Romania Hikes Key Rate to Eight-Year High on Inflation Spike
- Central bank increased key rate to 3%, matching estimates
- Inflation is seen rising more than forecast in next months
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Romania raised borrowing costs for the fifth time in a row as it races to tame the fastest inflation in 14 years, even as risks tied to the war neighboring Ukraine continue to pile pressure on the economy.
The central bank raised the benchmark interest rate by half a point to 3% at its meeting on Tuesday, matching the estimates of nine out of 12 economists surveyed by Bloomberg. The other three predicted a smaller hike to 2.75% at the session, which is the first since Russia launched its war on Ukraine.