The Executive Board of the National Bank of Moldova unanimously decided to reduce the base rate on the main short-term monetary policy operations by 1.0 percentage points, from 5.5 to 4.5% a year, IPN reports, quoting a press release of the central bank.
The base rates on overnight loans and deposits were decreased by 1.0 percentage points, to 7.5 and 1.5% a year respectively.
The decision was taken following the confirmation of the disinflation tendency forecast by the National Bank of Moldova in the inflation report No. 1 for 2020.
According to the Bank, the spread of the novel coronavirus at this stage generates additional disinflation pressure on consumer prices. At the same time, the uncertainty in investment activity associated with the coronavirus at global and regional levels and a possible distortion of the distribution channels could affect the evolution of investments in the Republic of Moldova.
The Bank’s decision to relax the monetary policy is aimed at supporting the aggregated demand that will be propagated through a number of channels, including the lending one.
