The executive board of the National Bank of Moldova today set the base rate on the main short-term monetary policy operations at 4.25% annually, down from 4.75%. At the same time, the interest rate on overnight loans was reduced from 6.75% to 6.25%, and the rate on overnight deposits was lowered from 2.75% to 2.25%.

The NBM has maintained reserve requirements for Moldovan lei and non-convertible currencies at 33% of the calculation basis. Similarly, reserve requirements for freely convertible currencies has been kept unchanged at 43%.

Also today, the NBM board approved the latest monthly Inflation Report, to be published on February 13.

“In December 2023, inflation was within the target range for the third consecutive month. Today’s decision of the NBM contributes to the consolidation of this performance, further stimulating aggregate demand, currently disinflationary, by encouraging consumption, balancing the national economy and anchoring inflationary expectations, among other measures”, the National Bank said in a press release.

The central bank says it is closely following the inflationary process, assessing the associated risks and uncertainties, and future decisions of the Executive Board will be aimed at maintaining inflation within ±1.5 percentage point of the 5.0 percent target, a level considered optimal for economic growth in the medium term.