Romanian Rate Cut in May Still Uncertain Amid Risks, Central Banker Popa Says

Romania’s central bank may need more time before delivering the first reduction in borrowing costs in more than three years as inflation isn’t slowing as fast as expected and risks remain elevated, Board Member Cristian Popa said.

Policymakers in Bucharest, who have now kept the benchmark rate at 7% for more than a year, signaled in February that they would likely join regional peers in easing monetary policy as early as May. However, the central bank’s latest statement showed that price growth will likely decline slower than previously expected this year.