Romania to Hold Rates as Sticky Inflation Prevents Debate on Cut

Romania is poised to keep one of the highest interest rates in the European Union as the fight against elevated inflation takes precedence over easing the strain on the recession-hit economy.

The National Bank of Romania will leave the benchmark rate at 6.5% for a 12th meeting on Tuesday, according to all economists in a Bloomberg survey. Borrowing costs have remained at this level for about a year and a half, during which the Black Sea nation went through its worst political crisis since the collapse of communism and is now seeking to reverse years of fiscal slippages.