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Savings still strong in Romania after central bank cuts interest rate

The people's deposits in Romania see a record increase of more than 40% at the end of April against the same month last year, although the National Bank made important reductions in the interest rate, reported the local daily Ziarul Financial on Wednesday.

According to the daily, appetite of Romanians for saving has remained robust, with deposits increasing by almost 43% in real terms at the end of April against the same period of 2006. The growth rate has accelerated constantly since October last year, when it stood at a little over 10%.

Deposits in the national currency lei became attractive to clients in the second half of 2006, when interests paid out by banks increased, amid a strengthening of the central bank's monetary policies. At the same time, the significant decline in inflation at the end of last year resulted in a significant rise on real interests for deposits. (