Romania Holds Key Rate at 6.5%, EU’s Highest, as Energy Prices Delay Easing

Romania's extended hold at the EU's highest policy rate reflects a bind rather than a choice: energy-driven inflation is colliding with recession, currency depreciation and political instability, leaving policymakers without room to ease even as the economy weakens. The signal matters beyond Bucharest — it shows how energy shocks can keep a high-yield EU member locked in restrictive policy longer than growth conditions alone would justify. Whether inflation responds to energy base effects before currency pressure forces a different calculus is the open question.