The interest rate for three-month funds on the money market (3M ROBOR) increased to 2.07% on October 6, compared to 1.81% on October 5, reaching the highest value since November 12, 2020, Economica.net reported.

Notably, the National Bank of Romania hiked the refinancing rate by 25bp to 1.5% on October 5.

Similarly, the cost of the six-month funds (6M ROBOR) rose to 2.16% from 1.89% and reached its highest level since November 6, 2020.The evolution of interest rates on the money market is usually correlated with (followed by) the evolution of yields on government securities.

Although there is no direct relation between ROBOR and the lending interest rates, a higher cost of money will eventually result in higher consumer and mortgage interest rates paid by debtors.

(Photo: Octav Ganea/ Inquam Photos)

andrei@romania-insider.com