Romania Overnight Interbank Rates Hit Lowest Level Since Financial Crisis
Romanian overnight interest rates on the interbank market dropped to 1.71%-2.21% a year Thursday, amid liquidity surplus, reaching the lowest level since the global financial crisis first hit in 2008.
Overnight rates were below the central bank’s rate of 1.75% offered for the deposit facility.
The central bank last week cut its main interest rate by a quarter of a point to 5.75%, following a similar operation in November last year.
“The second rate cut has shifted expectations in the interbank market. Most of the participants estimate the monetary policy easing will continue and this is why the overnight rates declined by more than the 50 basis points shed off by the central bank,” said Ciprian Mihai, head of the forex and derivatives division at Volksbank Romania.
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