Economists at ING Bank Romania estimate that the 3-month Robor index evolution will reflect the potential increases in the key interest rate that might be taken by the National Bank of Romania (BNR) up to 2019.
The BNR increased the key interest rate to 2.25 percent in the last monetary policy meeting, this is being the second consecutive increase in the year to date.
ING analysts, quoted by profit.ro, expect two additional hikes of the key interest rate by 0.25 percentage points and three increases next year.
The central bank estimates that the core inflation rate – the indicator that excludes volatile and administered prices – will grow to 3.3 percent versus 2.9 percent in the previous forecast, and 3.6 percent in 2019, above the targeted interval of 1.5 percent – 3.5 percent.
The 3M Robor reached 2.06 percent on Monday.