Banks are more generous in rewarding short-term maturities
Usually, the banks would pay a higher interest for a long-term maturities, rewarding thus their customers for leaving the money at the bank for a longer while.
The inversion of the yield curve reflected the expectations of the banks the BNR’s key interest to go down, at the same time with the slowdown of the inflation.
For instance, BCR, which is the largest bank in the system, had interests in placements per month standing at 8.75 percent per year, climbing up to 9.05 percent per year for the six-month deposits and going down to 8.5 percent per year of the 12-month deposits.
The most significant difference in interests was seen at the Volksbank, a bank paying 11 percent per year for one-month deposits and only 7.7 percent for 12-month ones.