South East European stock markets traded mixed on Tuesday, as Romania’s central bank raised its key monetary policy rate by 75bps to 3.75%, in a surprise move. It was the sixth consecutive hike since October, due to rampant inflation and the economic impact of the war in Ukraine, pushing borrowing costs to the highest since 2014. The inflation outlook worsened and policymakers expect the inflation to continue to rise.
“The inflation dynamics will probably climb considerably above the previously-forecast levels and will fall to one-digit levels no sooner than 2023 H2, remaining above the variation band of the target at the end of the projection horizon,” the bank said.
Romania’s annual inflation rate rose by 10.15% in March.
1. ATHENS – ATHEX 1.67%
2. BELGRADE – BELEX15 -0.29%
3. BUCHAREST – BET -0.30%
4. ISTANBUL – BIST 100 1.03%
5. LJUBJLANA – SBITOP -1.99%
6. NICOSIA – CSE GI 0.01%
7. PODGORICA – MNSE 10 0.00%
8. SARAJEVO – SASX10 0.15%
9. SKOPJE – MBI 10 0.36%
10. SOFIA – SOFIX -0.57%
11. ZAGREB – CROBEX -1.99%
