The annual rate of inflation in the fourth quarter will hit a record high and will then enter a new phase, decreasing during the next forecast period. The rate of inflation will decline by all the components, as the central bank forecast.

Given the current forecasts, the National Bank of Moldova is to switch over from a restrictive monetary policy to a simulative one. The goal is to create favorable financing conditions for the business community and the population, IPN reports.

Presenting the last inflation report this year, the governor of the NBM Octavian Armașu said that even if the annual rate of inflation is expected to change its trajectory, eventual risks and uncertainty for the next forecast period should be taken into consideration. The central bank will continue monitoring the situation and, if necessary, will intervene with the necessary adjustments.

Among the main internal concerns are the provision with the necessary energy resources and their price, the adjustment of charges, the refugee inflow and weather conditions, the NBM noted in a press release. The external risks include the reduced global supply, high quotations of energy resources and other raw materials. The war in Ukraine also generates uncertainty.

The central bank will present the next inflation report in February 2023.