Meeting on January 31, the Administration Board of the National Bank of Moldova (NBM) decided that the basic rate applied to the main short-term monetary policy operations of the NBM and the interest rates for the standing facilities of overnight credits and overnight deposits remain unchanged at the levels of 16, 18 and 2 per cent per year, respectively. The measures taken by the National Bank of Moldova (the increase of the basic rate by 2.5 percentage points and of the required reserves ratio by 5 percentage points), as well as the management of the liquidity in the money market through open market operations, set prerequisites for a lower level inflation in 2007 Moldova as compared to that of 2006 and resumed the downward trend in the annual inflation levels. According to the data of the National Bureau of Statistics, consumer prices advanced in December 2007 only by 0.9 per cent versus 1.6 per cent in October and 1.3 per cent in November. The annual inflation rate amounted at the end of 2007 to 13.1 per cent versus 14.1 per cent registered at the end of the previous year. Nevertheless, the evolution of the economic situation since the last decision of the Administration Board with regard to the interest rate level of the National Bank confirms the fact that the outlook for price stability is still subject to some risks. Given these circumstances, until the trends of inflation moderation are set out in the course of 2008, the National Bank deems rational keeping the interest rates for the monetary policy instruments at the current level. At the same time, the National Bank stresses that, in the context of strengthening the process of inflation mitigation, it will continue to monitor the evolution of the macroeconomic and monetary indicators, of the money market conditions and will, upon necessity, take firm and prompt measures aimed at ensuring macroeconomic stability.