Romania Holds Interest Rate With Tax Hikes Set to Fuel Inflation

Romania’s central bank kept interest rates unchanged as the country braces for an inflation surge from a series of tax hikes designed to curb the budget deficit.

The National Bank of Romaniaheld the benchmark rate at 6.5% on Friday, maintaining one of the highest borrowing costs in Europe for an eighth meeting and matching the estimates of all economists in a Bloomberg survey.

Policymakers in Bucharest also approved an updated inflation report assessing the impact of higher value-added tax and excise duties from this month, which will be presented by Governor Mugur Isarescu on Tuesday. Romania had one ...