Interests on deposits are not very high, but neither are loan interests, and they keep dropping gradually, director of the National Bank of Romania's Stability Department Eugen Radulescu told a specialist conference on Wednesday.
"I don't think interest rates on deposits are too high, but neither are loan interest rates, and they continue to drop slowly. If we look at the figures we'll see that every month there has been a small decrease in loan interest rates, at a time when, in addition to the twin deficits I referred to, we also have a problem called inflation. Inflation in Romania is among the highest in Europe, if not even Europe's highest. We have just recently been able to enter the corridor, and this rather due to external factors such as the fall in oil prices. If this had not happened, we wouldn't have probably entered the corridor so soon, therefore we must be careful," Radulescu said.
The central bank official specified that the decrease in interest rates fits into a general global trend and helps restore or resume economic growth.
Representatives of the Romanian banking system discuss on Wednesday economic developments and the economic situation at the ZF Summit Bankers 20.