Central bank to target inflation

The Board of the National Bank of Moldova (NBM) said in a press release it adopted an action plan to implement an inflation targeting strategy. This strategy is characterised by the public adoption and setting of a quantitative inflation target for one or more lapses of time and explicit assumption by the monetary authorities of price stability as the priority objective of the monetary policy. The Action Plan on the implementation of the inflation targeting strategy provides the optimisation of monetary policy operations of the NBM, creation of an adequate database, as well as of the framework of analysis, modelling and forecast, the formulation of public information policy and measures for increasing the confidence degree of the civil society in the monetary policy promoted by the central bank. According to NBM, the analysis of the experience of other countries, including of those in Central and Eastern Europe, demonstrates that all the countries where the fundamental objective of the central banks is the ‘price stability’, chose a regime of direct inflation targeting, which proved to be the most efficient monetary policy regime for the achievement of the mentioned objective. The need to update the existing monetary policy derives from the recently set fundamental objective of the central bank – to ensure and maintain price stability.