The interbank interest rates for loans ROBOR continued to grow on Wednesday, July 4, reaching new record levels for the last four years despite the central bank’s decision to keep the monetary policy rate unchanged at 2.5% per year.

The 3-month ROBOR (ROBOR 3M), which is used as a reference for consumer loans with variable interest, went up to 3.34% per year on Wednesday, its highest level since March 2014. The 6-month ROBOR (ROBOR 6M), used as a reference for mortgage loans with variable interest, also increased to 3.39%, Mediafax reported. ROBOR is the average interest rate at which local banks lend money to each other.

The interbank rates have increased significantly this year, as the rising inflation prompted the central bank to increase the monetary policy rate from 1.75% to 2.5%. The 3-month ROBOR went up from around 2% at the beginning of this year to 3.34%. This translates into higher borrowing costs for Romanian individuals and companies.

However, Romania’s National Bank (BNR) governor Mugur Isarescu says the interest rate increase is normal considering the rising inflation. He scolded the local media for focusing too much on this subject. “I’m not comfortable with this avalanche of news that ROBOR at 3.2% brings the Apocalypse. We had the ROBOR at 4%, 5% and nobody died in Romania,” he said, asking the media not to create a new “Bogey Man”, Stirileprotv.ro reported.

He also said that the ROBOR rates are not high, given they are little over half the current inflation rate. The annual inflation rate in Romania reached 5.41% in May, its highest level in five years.

Interbank interest rates index ROBOR reaches highest level since 2014 in Romania

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editor@romania-insider.com