In just one week, ROBOR has grown to 8.14% from 7.85%. In early 2022, the three-month rate was below 3%.
According to Isarescu, in general, the ROBOR index sticks close to the monetary policy rate, but, over the last four-five months, the index has disconnected, with banks “crossing the line and taking the ROBOR index way above the key rate.”
Romania’s central bank decided at its board meeting on Friday (August 5) to raise its benchmark interest rate to 5.50% a year from the current rate of 4.75% a year, starting August 8, 2022. After the eighth consecutive hike since October 2021, Romania’s benchmark rate remains the lowest among its central European peers, but policymakers have relied on firm market liquidity controls to push market rates sharply above the benchmark, effectively making monetary conditions tighter.