The 3-month ROBOR Index, the average interest rate on which Romanian banks borrow from each other, has increased on Tuesday to 1.92%, the highest since November 2014, the National bank of Romania (BNR) informs.
The new increase comes after ROBOR climbed to 1.89% on Monday, the same level as on November 1, 2017, digi24.ro informs.
The 3-month ROBOR Index is the main indicator by which the variable interest rates on RON loans are calculated. The index is constantly growing since September 18, when it reached 1%.
The 6-month ROBOR Index has increased to 2.07% on Tuesday, the highest level since November 28, 2014, when it was 2.09%.
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 in the case of RON loans.
According to an analysis if the 3-month ROBOR Index reaches 2% and the bank’s margin remains the same, the average rate on a floating rate mortgage loan will increase by 4.3%. For a 3-month ROBOR Index of 2.5%, the average instalment will increase by 9.5% as compared to October, and at a ROBOR index of 3%, the instalment would increase by 14.8%.
At the beginning of October, the BNR representatives showed that the interest rates on the interbank market have increased in the context of fluctuations in liquidity and rising inflation at a faster pace than projected over medium term.