The Robor is down 0.75% on the previous adjustment at the end of September. Most banks should adjust the cost of variable rate loans at the end of the month.
Analysts expect money market rates to remain low because banks have too much cash on their hands and most forecasts indicate a continuation of the key rate relaxation policy early next year.
“Money market interest rates remain very low because of the very good liquidity and monetary policy relaxation. I expect liquidity in the banking system to remain very good as the central bank kept its promise to adequately manage the liquidity on the market (a message whereby the central bank suggests it will allow for higher volatility of rates on the market i.e.),” believes Florentina Cozmanca, senior economist of RBS.
The decline in leu loan cost is mainly because of the 1.25% monetary policy rate cut by the central bank over four consecutive meetings (July, August, September and November). A new 0.5% cut is expected for early next year.
At the same time, the central bank left more cash on the market because it did not feel any significant pressure on the exchange rate, so interest rates fell below the key rate level. Analysts expect the central bank to continue doing the same even if faced with exchange rate pressure.
(English version by Loredana Fratila-Cristescu)