ING: Romanian Inflation Easing, Rate Cuts Unlikely Near-Term

Romanian inflation is being driven lower by favorable base effects, ING strategist Frantisek Taborsky noted. The decline in price pressures, however, is unlikely to prompt an immediate policy response.

The National Bank of Romania is expected to hold rates steady, with no cut anticipated before early next year. The central bank remains cautious amid geopolitical uncertainties and still-elevated core inflation.

Taborsky highlighted that the easing trend may support Romanian assets, but the rate outlook will keep the leu under close scrutiny. Market participants are focused on when the NBR might pivot, with the first move seen no sooner than early next year.