The money market interest rates might increase in the months by the end of the year, putting pressure on the indebtedness of the debtors at a time when their incomes are not expected to grow as fast as they did in the past, deputy head of the Romanian CFA analysts stated.

"I would not be surprised to see the [money market interest rates] ROBOR at three and six months above the 7% [from 6.3%-6.4% currently] by the end of the year. Such an evolution would be dictated by several internal and external factors. First of all, it would be the reversal of the disinflationary trends", says Adrian Codirlașu, vice president of CFA Romania, quoted by Economica.net.

The analyst explained that a Government ordinance that would increase fees and taxes, a budget deficit that is heading towards 5% of GDP and even an increase in the country risk premium felt in the market are the main domestic causes that could lead to an increase in long-term interest rates.

The external dangers would even be generated by the downgrade of the US rating by Fitch, a downgrade that could raise the FED interest rate again.

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iulian@romania-insider.com