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Bulgarian National Bank warns of interest rate hikes on loans and deposits

The Bulgarian National Bank warns of a significant raise in interest rates on loans and deposits.
Photo: BGNES

The Bulgarian National Bank (BNB) in its economic analysis forecasts a significant raise in interest rates on loans and deposits. The biggest increase in interest rates is expected to be in the fourth quarter of this year and the first half of next year. The BNB experts' prognosis is based on the European Central Bank's tightening of monetary policy. 


By the second half of 2023, the BNB expects interest rates on deposits and loans to stabilise at higher levels, in line with market forecasts for money market interest rate dynamics in the euro area. 


Because of rising interest rates and inflation, the growth of credit to the non-financial sector will slow down next year. On the other hand, deposit growth will continue because of higher interest rates and expected wage increases. 




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