Romania’s money market rate (ROBOR), the main indicator that sets the interest rates for RON currency borrowers, reached on Wednesday a new 3.5-year record, of 2.47 percent, following a new central bank open market operation, National Bank of Romania (BNR) data show. Experts say the increase is normal and forecast further rises until the end of the year.
The ROBOR 3M calculated for May 2, 2018, is the highest since October 23, 2014. The 3M rate rose by 0.2 percentage point from the previous market session.
Compared with the end of 2017, the 3-month index rose by 0.42 percentage points, from 2.05 percent.
Last week, the ROBOR 3M reached 3.5-year high-levels for three days in a row.
Analysts say the 3-month money market rate should be above the central bank’s policy rate (currently 2.25 percent).
The Romanian central bank had three open market operations during the last three weeks, absorbing more than RON 18 billion (around EUR 4 billion) in the first two operations and RON 7.9 billion on April 30 from the banks through one-week deposit tenders.
BCR’s chief economist estimates the 3-month money market rate will continue to grow until the end of this year, approaching 3 percent, if BNR rises the monetary policy interest rate to 2.75 percent in 2018.
The 3-month ROBOR index reached a record low of 0.68 percent in September 2016.
The 6-month ROBOR index stood at 2.57 percent on Wednesday.