Romania to Hold Rates With Stagflation Risks Clouding Outlook

Romania is poised to keep interest rates at the highest level in the European Union as policymakers confront the dilemma of double-digit inflation and a deepening recession.

The National Bank of Romania will leave the benchmark rate at 6.5% on Friday, according to all economists in a Bloomberg survey. Central bankers, who have kept borrowing costs steady for a year and half, are also weighing the impact of a weaker currency following capital outflows triggered by renewed political instability.