Prima pagină » English » Romanian Ctrl Bk Fails To Attract Deposits As Mkt Interest Rates Are Higher

Romanian Ctrl Bk Fails To Attract Deposits As Mkt Interest Rates Are Higher

The auction organized by Romania’s central bank Monday to drain excess liquidity off the market, as no lending institution took part in the operation, considering commercial banks offer interests ranging between 10.69% - 11.22% for one-week deposits, while the central bank offers 10%.
Romanian Ctrl Bk Fails To Attract Deposits As Mkt Interest Rates Are Higher
30 iun. 2008, 15:11, English

"Interests on the market are more attractive than the central bank’s, and no lender took part in the auction,” said a dealer with a Bucharest-based bank.

In the auction last Monday, the central bank attracted 1.85 billion lei (EUR1 =RON3.6475) in a one week deposit, with an interest of 9.75%, equal to the key rate at that time.

The central bank raised Thursday, for the sixth time running, its monetary policy rate by 0.25 percentage points, to 10%, citing persistent inflationary shocks driven by forthcoming increases in administered prices such as natural gas and electricity.