Loan interest rates in Romania not to drop soon – analysts

Sluggish disinflation caused by the effects of the fiscal package will keep the loan interest rates from changing in the coming quarters, Economica.net concludes based on comments by CFA Society deputy president Adrian Codirlasu.

"At least until the end of next year or even until the first quarter of 2025, I don't think IRCC [the benchmark used to calculate the mortgage loans' interest rates] will see any significant movements. Probably, only at the beginning of 2025 will we see the first decreases in credit rates, especially in mortgages," said Codirlasu.

IRCC is calculated based on the money market rates (6M ROBOR, currently steady at 6.4%), but with a delay of two quarters.

With the sluggish disinflation and particularly given the delay in the monetary policy easing cycle, it is likely that the money market interest rates will not fall too soon as well.

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