Bloated Budgets Curb Scope for Rate Cuts in Poland and Romania

Poland and Romania are set to keep their interest rates steady on Wednesday due to concerns that loose fiscal policy could fuel inflation.

Eighteen out of 30 economists surveyed by Bloomberg expect the National Bank of Poland to keep its main rate at 4.75%, while the rest predict a quarter-point cut. Romania’s central bank is seen keeping its benchmark at 6.5% by all 12 respondents.