PM Tudose – BNR row on ROBOR index. Central bank official says time for low interests is over

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Eugen Rădulescu (photo 2eugen-radulescu), Director of the BNR Financial Stability Directorate, has said on Saturday that he will not reply to the “political statements” made by PM Mihai Tudose on Friday. However, the BNR official said he expects higher interest rates and higher interest for deposits, informs.

Prime Minister Mihai Tudose said on Friday, referring to the ROBOR index increase, that probably “the colleagues at BNR were gone outdoors for a while,” because the role of the central bank is to intervene.

“I am not going to answer to political statements. This is a political statement. What should I do? Firstly, I believe that currently the discussion about ROBOR is disproportionate. For the time being we are talking about an increase from 1% to 1.5%, an increase of 50 basic points. The inflation has gone up much more than this,” Eugen Radulescu said during a press conference in Sinaia.

Radulescu added that interest could not remain at the same level if inflation is going up.

“Mr. Vasilescu (BNR Governor’s adviser – our note) said it too: the time of low interest is coming to an end. The United States have increased the interest twice or three times. For nine years the interests were very low. This situation is coming to an end, it can’t last forever,” Radulescu said.

“The interests will go up, the interest for deposits will also go up. For the time being, the interest for deposits are very, very low and do not cover inflation,” Radulescu concluded.

Three-month ROBOR index, according to which the cost of variable-yield loans in RON are calculated, increased to 1.58% on Friday against 1.46% on Thursday and against 1.11% on Monday, according to BNR.

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