The Executive Board of the National Bank of Moldova (NBM) on November 8 decided to keep unchanged the values of the main monetary policy instruments. This way, the base rate on the main short-term monetary policy operations was maintained at the level of 21.5 percent annually. The interest rates on overnight loans and deposits remained unchanged at 23.5 percent and 19.5 percent, respectively, IPN reports.

According to the NBM, the decision was influenced by the effects of the previous monetary policy decisions and is aimed at slowing down the increase in consumer prices by alleviating the secondary effects of the supply shocks and by further supporting financial intermediation in national currency and saving to the detriment of consumption, keeping steady the trade balance by anchoring inflation expectations.

In accordance with the previous and current forecasts, the annual rate of inflation in the fourth quarter of this year will reach a maximum level and will change the trajectory, diminishing throughout the forecast period. As the direction of inflation will change, the monetary policy conduct will require adjustment to the national and global realities with increased attention so as to create appropriate conditions for achieving the main objective of the central bank.

Given the major risks and uncertainty, when the balance of risks inclines to disinflation risks, the NBM will promote a simulative monetary policy that will ensure the decrease and maintaining of inflation close to the target inflation.

The annual inflation rate in September 2022 was 34%, up 2.2 percentage points on June 2022.