The National Bank of Moldova’s Executive Board unanimously decided to keep the base rate on the main short-term monetary policy operations at the level of 5.5% a year. The interest rates on overnight loans and deposits were also maintained, at 8.5% and, respectively, 2.5%, IPN reports.
In the meeting of the Economic Press Club, National Bank governor Octavian Armașu said the decision was taken based on the new inflation forecast that confirmed the accuracy of the previous forecasts and emphasized the correctness of the decision taken last December. The effect of the monetary policy measures adopted then is to be propagated, having the period of time needed to transmit the impulse to the real economy as a reference point.
Octavian Armașu also said that the mandatory reserves decline gradually, while the foreign exchange reserves remain at the level of 20%.
Currently, the inflation is following a descending trajectory that can leave the variation interval of ± 1.5 percentage points from the target. The disinflation risks continue to persist and meteorological risks with a pro-inflationist risk are also expected this year. This way, the resumption of the measures to relax the monetary policy will depend on the materialization of the risks associated with the inflationist process, effective data afferent to the dynamics of inflation in the first quarter of this year and the evolution of the national economy.
Last month, the Executive Board reduced the base rate on the main short-term monetary policy operations by two percentage points to 5.5% annually. It also cut the interest rates on overnight loans and deposits to 8.5% and, respectively, 2.5% a year.
