Romania's central bank raised its annual inflation forecasts for this year and next and warned pending tax changes to curb a rising budget deficit significantly raised outlook uncertainty, Governor Mugur Isarescu said on Wednesday.

The bank expects inflation at 7.5% in December, compared with a previous forecast of 7.1%. It sees inflation at 4.4% at end-2024, compared with 4.2% previously and above its 1.5%-3.5% target band.

Earlier this week, policymakers kept the benchmark interest rate on hold at 7.00%. (Reporting by Luiza Ilie; Editing by Jason Hovet)