Despite rising inflation, Romania’s central bank decided to keep the monetary policy interest rate at 2.5 percent. The move came as no surprise to economists and market watchers who were predicting the bank would try and avoid a new dispute with Romania’s government by maintaining the interest rate for the ninth time in a row, according to local news reports. A day earlier, Mugur Isarescu secured a new five-year term as head of the central bank. He is currently the longest serving central bank governor in the world. The bank raised the interest rate from 2.25 percent to its current level in May 2018, its highest level since February 2015. Inflation increased to 4.1 percent in May. The bank is now forecasting it could hit 4.2 percent by December.
