The benchmark interest rate used for calculating individual mortgage loan interest rates (IRCC), compiled by the Romanian National Bank (BNR) on a quarterly basis, increased marginally to 2.66% based on the third-quarter data, up from 2.63% one quarter earlier, Adevarul reported.

In the first quarter of this year, the value of this benchmark was 2.36%.

IRCC was introduced under emergency ordinance 114/2018 as an alternative to the ROBOR, criticized for reflecting quotations rather than actual deals on the money market, and presumably easier to influence by banks.

IRCC will continue to increase in 2020, but in a manner that is not as predictable as ROBOR, the head of bank analysts association - AAFBR Iancu Guda commented quoted by Agerpres.

The risk for higher IRCC levels is rising as the trade tensions between US and China escalate, he explained. Furthermore, IRCC will also depend on the liquidity on the money market, he added.

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editor@romania-insider.com