National Bank of Moldova reduces basic rate at principal monetary policy operations

Chisinau, 7 February /MOLDPRES/ - The basic rate applied at the principal short-term monetary policy operations has been established at 17 per cent, against 20 per cent in December 2022. Governor of the National Bank of Moldova (BNM) Octavian Armasu announced a decision to this effect, taken BNM’s executive committee today.   

At the same time, the rates of the interests on the overnight loans were established at 19 per cent annually (against 22 per cent earlier) and on the overnight deposits – at 15 per cent annually (against 18 per cent).   

BNM Governor Octavian Armasu said that ‘’the today’s decision is adopted from the viewpoint of ensuring the continuity of the stimulating measures, in the context of the cycle of relaxation of the monetary policy, started in the end of the last year, amid grounded premises related to the continuation of a disinflation macroeconomic framework.’’    

„The decision is conditioned by the confirmation of the truthfulness of BNM’s forecast from October 2022 and the perspectives of deceleration of the annual inflation, under the impact of pronounced disinflation pressures on behalf of the domestic and external demand, as well as a neutral fiscal impetus, validated by the current forecast,’’ Armasu noted.    

The official also said that, according to the present forecast, ‘’the annual inflation rate will have a quick descendant tendency during this year, returning to the target variation interval in the second quarter of the 2024 year, where it will be maintained till the end of the forecast horizon.’’