The short-term interest rates on the money market (ROBOR) went down significantly on Monday, March 23, thus opening the door for cheaper financing for both households, companies and Government, after Romania’s National Bank (BNR) cut the refinancing rate by 0.5pp last Friday furthermore lowering the Lombard rate by one full percentage point and promising adequate liquidity.

Meanwhile, the local currency remained constant against the euro, quoted at RON 4.84 to EUR - but not without BNR’s intervention.

The ROBOR rate for the 3-month maturity, used as a benchmark for the consumer loans, decreased sharply to 2.61%, from 3.24% last Friday.

At the same time, the ROBOR for 6-month maturity dropped to 2.70%, from 3.31%.

ROBOR rates had risen significantly over the last week prior to the central bank’s decision, amid the increased risk-aversion in international financial markets. ROBOR for the 3-month maturity hit 3.24% on Thursday, March 19, from 2.86% on March 12.

The official exchange rate for the euro announced by the central bank on Monday at noon was RON 4.8443, almost unchanged compared to Friday, after the central bank’s interventions brought the exchange rate down from RON 4.89 per EUR (interbank quotation on Monday morning).

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editor@romania-insider.com