The National Bank of Moldova has set the base rate for the main short-term monetary policy operations at 10% per year, compared to 14% in March. Also, the interest rates on overnight loans and deposits have been set at 12% and 8% respectively, down by 4 points.

The NBM says that the timely adoption of restrictive monetary policy measures during 2022 led to a change in the inflation trend. After a maximum of 34.6 percent reached in October 202, the inflationary process has been tempered continuously, with inflation dropping to 18.1 percent as of April 2023.

“Higher tariffs with their knock-on effects, the war in Ukraine, last summer’s drought and higher excise duties at the start of the year are keeping inflation well above target. However, the disinflationary demand, starting from the middle of last year, and the appreciation of the leu from the beginning of this year continue to mitigate the pressures of the mentioned factors”, said the NBM.

Also today, the NBM approved the second Inflation Report, which will be published on May 15.

The National Bank says that the trends anticipated in previous rounds remain valid. The inflation forecast has been reduced for the entire comparable period, largely due to all components.