Leu lending cost excessively high, says Central Bank governor

The cost of leu lending is excessively high and the National Bank of Romania /BNR/ encourages cheaper national currency credit, Central Bank Governor Mugur Isarescu told the Romania Financial Forum.

Isarescu added that, while the BNR keeps the key rate at 6.25 percent, the interest rates on the leu loans do not drop below 12-13 percent.

The Central Bank head said the interest rates fail to drop very much over fears of renewed inflation.

Isarescu announced the inflation is on a downward trend and that the year-on-year inflation rate in September had been within the target interval (i.e. it dropped below 4 percent), but „people do not believe in it”.

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