The interest rate at which banks in Romania can borrow money from the central bank through the Lombard lending facility is 1.75%.
Last week, the three-month rate jumped to 1.65% a year after stagnating at 1.61% during seven trading sessions.
The three-month rate currently is below the level of 2.01% a year, in early 2021.
The rate stood at 3.19% a year in early 2020 and at 2.03% a year at the end of 2020.
ROBOR is a monetary indicator used to calculate variable interests for loans in lei and interests for mortgage loans. Loans in lei with variable interests, granted before May 2019, depend on the variations of the ROBOR index.
The IRCC, which is defined as the quarterly average of interbank money market transactions, replaced the ROBOR money market interest rate in the calculation of variable interests on new retail loans in lei, at the beginning of May 2019.
The IRCC index decreased to almost half compared with the first value calculated, dropping to 1.25% and equalling the central bank’s benchmark interest rate.