Still room to maneuver on interest rates

“Deposit interest rates have significantly adjusted, and I expect commercial banks to cut them further, as long as the monetary policy rate will continue to drop”, Catalina Molnar, RBS Romania’s senior analyst told Wall-Street.

Deposit rates dropped more rapidly due to the cash flow into the money market from the central bank’s coffers, stabilizing the cash flow in the banking system while reducing monetary policy rate from 10.25% at the beginning of the year, to a current 8.5%.

“There is still room to maneuver on both lending and deposit interest rates”, RBS’ analysts concluded.