Short-term interest rates have remained substantially higher in Romania than in the region this year, both in nominal and real terms.
All eyes turn now on the Central Bank as the room to ease the monetary policy stance has increased recently (political and fiscal risks are diminishing; investment grade rating was preserved; inflation outlook remains benign; interest rates are expected to remain unchanged in 2021 at very low levels on the foreign markets).
Note: 3-months real interest rates (chart on the left) are computed based on own estimates for trend in inflation rates (chart on the right).
