The base rate charged by the National Bank of Moldova has been raised by 2 points to 8.5% per annum, as decided by its board in an extraordinary meeting.

Interest rates on overnight loans and deposits have also been increased by 2 points to 10.5% and 6.5%, respectively.

Additionally, reserve requirements for national and non-convertible currencies have been raised by 2 points as well, to 28% of the calculation base, while convertible currency reserve requirements remain unchanged.

According to the NBM, the measures aim to temper inflationary pressures and offset shocks on the economy so as to speed up its return to a state of equilibrium.

The central bank said inflationary processes are related to rises in global and regional food, energy, and raw material prices. Pressure is also put by growing domestic demand due to increasing available income and higher consumer lending activity.