BNR injects RON 9.7 bn into the market through repo operation to cap interest rates

The National Bank of Romania (BNR) injected RON 9.7 billion (EUR 2.1 billion) into the banking market on Monday, the biggest amount iofthe last month, through a repo operation (government securities-backed lending to banks), at a 2.5 percent yearly interest rate. This move is designed to address liquidity shortage – and to cap interest rates in the market.

One week ago, BNR inhected into the market RON 6.5 billion.

BNR also posted an average interest rate level for the received overnight deposits, of 2.39 percent per year, a decrease from Friday’s 2.4 percent rate.

The interest rate for its placed overnight deposits (ROBOR) decreased to 2.69 percent per year from the 2.7 percent level in the previous session.

After central bank’s intervention into the market, the 3-month ROBOR rate remained unchanged at 3.17 percent.

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In September, the BNR had three repo operations through which it offered banks RON 16.9 billion.