The 3-month interbank interest rate ROBOR 3M, the main reference for loans in local currency, went up for the fourth day in a row on Wednesday, April 25, reaching 2.42% per year, a new record of the last three years and a half, local Agerpres reported.

The ROBOR 3M went up from 2.13% on Friday, to 2.22% on Monday and 2.28% on Tuesday as the central bank drew deposits work almost EUR 4 billion from local banks, draining the extra liquidity from the market. Romania’s National Bank (BNR) is thus trying to keep inflation under control, but the ROBOR increase will result in higher costs for companies and individuals with loans in local currency.

The recent inflation spike and interest rate increase have increased the tensions between the central bank and the PSD government. Finance minister Eugen Teodorovici said on Wednesday that he and the prime minister would have a meeting with central bank officials next week to talk about the recent evolutions.

editor@romania-insider.com