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The Influence of Inflation rate on Robor in the Romanian Banking System - Case Study

Author

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  • Iulia Iuga

    (†1st of December 1918†University of Alba Iulia)

Abstract

In this paper, the author analyzes the evolution of inflation, the evolution of ROBOR 3M, and, respectively, ROBOR 6M, for the 2007-2018 period. It also analyzes the correlation between the inflation rate and ROBOR 3M/6M in the Romanian Banking system using the Pearson index. The result of the correlation based on Pearson correlation coefficient between the inflation rate and ROBOR 3M, respectively ROBOR 6M, was 0.76 for the first correlation, indicating a very good correlation, and 0.78 for the second correlation, indicating a better correlation than the first one. According to the results based on theory and practice, there is a connection, a strong relation and a correlation from good to very good between the inflation rate and ROBOR 3M, and respectively ROBOR 6M. Starting with May 2019, for credit variable interest rate contracted after May 2, 2019, will have the formula for slightly modified interest rates.

Suggested Citation

  • Iulia Iuga, 2019. "The Influence of Inflation rate on Robor in the Romanian Banking System - Case Study," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 607-613, August.
    • Handle: RePEc:ovi:oviste:v:xix:y:2019:i:1:p:607-613
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    nflation rate; Robor; Pearson coefficient; correlation;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics

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