BUCHAREST: Romania's annual inflation quickened to 2.0 percent in June, slightly below market expectations, and the trade deficit shrank slightly in the first five months, official data showed on Tuesday.
Although inflation is well within the central bank's target band, it has little room to cut interest rates because of risks stemming from the euro zone's debt crisis and as the leu currency is close to all-time lows.
Data also showed adjusted industrial output fell 0.6 percent on the
month in May and was down 0.2 percent year-on-year. The leu has also been hit by uncertainty over the future of the euro zone, Romania's main trade and banking partner, and the central bank paused a monetary policy easing cycle after four consecutive quarter point cuts since November.
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