Romania C. Bank Raises Rates Further

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Romania's central bank hiked the key policy rate on Wednesday, for the ninth session in a row, in a bid to rein in inflation and to support the economy.

The Board of the central bank decided to increase the monetary policy rate to 6.25% from 5.%, the National Bank of Romania (NBR) said in a statement.

The central bank also lifted the lending facility rate (Lombard) to 7.25% from 6.5% and the deposit facility rate to 5.25% from 4.5%. Policymakers also reaffirmed their decision to maintain firm control over money market liquidity.

Annual inflation resumed its acceleration in August, climbing to 15.32%, marginally above the forecast, after having fallen to 14.96% in July, from 15.05% in June. The increase was almost entirely driven by the continued hike in food prices.

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