Lenders have gradually adjusted the level of interests on lei and euro-denominated deposits, which are now range between 6-12 percent annually for deposits in national currency. This is a rather low level, compared to the huge interest rates that banks were willing to offer in the first half of this year, to attract as much money as possible. In February, banks paid an average annual interest rate of 16.44 percent for individual deposits between one and three months, while time corporate deposits had returns of 18.82 percent in March.
Analysts are considering gradual cuts in the benchmark interest rate, by up to one percentage point from the current level of nine percent by year-end. “Interest rates on lei deposits will align to the 7-8 percent level at the end of this year, but there will continue to be promotions, to encourage savings. Bank deposits will continue to increase, and their growth rate will exceed the lending’s increase,” the Chief Economist of Banca Comerciala Romana (BCR), Lucian Anghel, said.
