Romania's National Central Bank ends interest rate increases on the inter-banking market

October 23, 2008

Romania's National Central Bank ends interest rate increases on the inter-banking market

Romania's National Central Bank took several measures to stop increases in interest rates on the inter-banking market, after these increased significantly . Thus, if the level of the ROBOR interest exceeds 25% the level of the central bank's interest rate level for credit, the central bank can temporarily suspend the publication of ROBID/ROBOR rates.

According to a press release of the institution, the central bank will publish the ROBID interest rates for all deadlines, at the level of the central bank's deposit interest rate. When it comes to ROBOR, the central bank will publish it only for the same purposes. ROBOR will be published at the level of the central bank's credit facilitation interest rate.

The measure was taken to assure a normal use of the inter-banking monetary market and to avoid unjustified transfers of interests towards clients through the increase of their interests for credits. The measure was taken mainly to protect those that have a credit in the national currency, as these are calculated depending on ROBOR's rate.

ROBOR is the average interest rate for credits in Romanian Ron offered on the inter-banking market. ROBIT is the average interest rate used for commercial banks to accept inter-banking deposits. Both rates are established daily by the central bank. (hotnews.ro)

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