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ROBOR rapid growth: The three-month index reaches 1.58pc. Interest rates up by nearly 50pc since Monday

3-month ROBOR Index continues upward trend to 3.39pc. BNR Governor says over long term it could increase further

The 3-month ROBOR Index, according to which the cost of variable-yield loans in RON is calculated, has increased to 3.39% on Thursday, up against 3.34% on Wednesday, according to the figures released by the National Bank of Romania (BNR). A higher level was registered on February 26, 2014 of 3.40%.

Early this year the index was 2.05%, on July 5, 2017 it was 0.86%.

The 6-month ROBOR Index, used to calculate interest rates on mortgage loans, has increased to 3.46%, up from 3.39% on Wednesday. In early January the 6-month ROBOR Index was 2.05%.

The 9-month ROBOR Index, representing the interest rate paid for the loans in RON attracted by the commercial banks from other commercial banks for a nine months period, has increased to 3.48% per annum, up from 3.40% in the previous session.

The 12-month ROBOR Index has reached 3.52%, up from 3.42% on Wednesday.

ROBOR (Romanian Interbank Offer Rate) is the average interest rate for loans in national currency granted on the interbank market, and the increase of this indicator will lead to an increase of instalments for loans in national currency.

On Wednesday, National Bank Governor, Mugur Isarescu, said that over short term, up to a month, ROBOR could decrease, but over long term – 3 months, 6 months – it could increase further. He stressed this is a personal forecast.

Isarescu added that for BNR most important are the overnight levels (one day, one week, one month).

The central bank Governor said the ROBOR Indices developments are also a result of market reactions, of over discussing the issue and of the shortage of liquidities on the market (tax collection and return of money to circulation.

“These decisions belong to the market, they are not ours,” Isarescu said.

 

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