The increase registered by deposits came to a sudden halt early this year, both in RON and foreign currencies, despite the rising interest rates paid out by banks.

The population's RON-denominated deposits in early January registered a 32.5% increase (corrected against inflation) compared with the same period in 2007, after the annualised rate slowed down by almost 9% compared with December, when it stood at 41%.

Practically, the population's savings have not posted such a slow advance since last February, when the growth rate accelerated rapidly. The peak was reached in summer, when the growth rate sped up and reached 45%.

The RON is still the favourite currency in terms of savings, with the volume of the population's RON-denominated deposits standing at 43bn RON, from the equivalent of 26bn RON, the total volume of foreign currency placements.

However, since last autumn the RON has lost its dominance in the structure of loans contracted by the population. The shrinking appetite for savings was noticeable even as the NBR pushed interest rates up in a bid to encourage the population to put its money in deposits instead of spending it rapidly.

After the NBR implemented interest rate hikes, commercial banks started to adjust the interests paid to customers for deposits, with some players offering interest rates as high as 9% per annum.

The following months will show whether bankers can persuade customers to save more or price increases and rising interest rates for loans are actually leaving less money to save.

In addition, analysts are talking about possible further interest rate hikes the NBR could operate in the coming months as central bank projections point to an inflation increase to over 8% in March, and continued high levels in the second quarter.

Under the circumstances, real gains brought by RON placements will