Bogza, Bancpost: More than 8% interests on RON deposits are not justified

Bancpost, a top ten bank held by Greek financial group EFG Eurobank, has operated severe interest rate cuts on RON deposits, to 7% a year, which is lower than the key rate charged by the NBR (National Bank of Romania) for refinancing banks’ operations, which is set at 9% per year. Mihai Bogza, head of Bancpost, says that, with inflation already down to 5.9%, and amid prospects of a further decline, interest rates paid on deposits should pursue the same trend. “High interest rates on deposits are not sustainable in the long run. Interest rates should be in positive territory, but measured against the inflation anticipated for the coming period. If annual inflation slides towards 5%, as the NBR anticipates, interest rates of over 7-8% are not justified,” says Mihai Bogza, Chairman and CEO of Bancpost.
The bank has, however, kept two savings products, with three and twelve-month maturities respectively, on which it pays higher interest rates, of 11.5% and 10.5% a year.