Romania is poised to keep interest rates at the highest level in the European Union as policymakers confront the dilemma of double-digit inflation and a deepening recession.

The National Bank of Romania will leave the benchmark rate at 6.5% on Friday, according to all economists in a Bloomberg survey. Central bankers, who have kept borrowing costs steady for a year and half, are also weighing the impact of a weaker currency following capital outflows triggered by renewed political instability.