Moderate inflation ascribed to central bank efforts

Due to the correct monetary policy of the National Bank of Moldova (BNM), the consumer prices recorded in June kept the same level as in the previous month, while in the first semester of the year they advanced only by 3.9%, compared to a 7.4% increase in the same period last year, the bank said in a press release. The bank also said that the slower pace of inflation reduction process in the second quarter signalled that certain inflationary expectations continue to exist. Under these circumstances, in order to ensure the irreversibility of the inflation rate, the Council of Administration of the National Bank decided to maintain the basic rate, applied to refinancing REPO-buying operations through 2-month state securities at a level of 13.5% per year. To slow down the growing inflation rate, the National Bank will continue to closely monitor the monetary conditions, using its whole system of instruments, including the increase of the excess liquidity sterilisation volume within the banking system. Interest rate policy adjustments will be carried out according to the dynamics of macroeconomic and monetary indicators, taking into consideration the necessary conditions for a sustainable economic growth, the press release concludes.