“The increase in interest was as expected on the market, and was already included in the exchange rate. If BNR had surprised the market with a higher increase in interest, the market would have been subject to a rise,” said Ionut Dumitru, Chief Analyst, Raiffeisen Bank.

However, the decision could impact on commercial bank loans and deposits. Most analysts questioned by Business Standard are expecting a new rise on interest for lei-denominated loans and deposits. Yesterday’s increase is BNR’s fourth consecutive rise in key interest. The National Bank increased key interest by 2.5 percentage points in September 2007, to the maximum high in the past two and a half years. Romania has the highest monetary policy interest of all European Union member states.