The quarterly IRCC, the benchmark local banks use for indexing their interest rates on mortgage and consumer loans, decreased from 2.41% to 2.17%, Romania's National Bank (BNR) announced on September 30, Ziarul Financiar reported.

The updated index was calculated based on the weighted average interest rate for the money market deals during the second quarter (Q2).

Romanians will thus pay lower loan interest rates in the next three months.

The IRCC is slightly higher than the value announced on Wednesday for the 3-month ROBOR index, quoted at 2.11%, now on an upward trend after it has hovered below 2% until recently.

Starting May 2019, the banks grant new retail loans in local currency with variable interest indexed to a new benchmark (IRCC), which replaced ROBOR in retail credit contracts.

IRCC is calculated at the end of each quarter and used by each credit institution to calculate the interest rate charged during the next quarter.

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andrei@romania-insider.com