The Executive Board of the National Bank of Moldova (NBM) unanimously decided to decrease the base rate applied to the main short-term monetary policy operations by 1.25 percentage points, to 3.25 percent annually. Also, the interest rates on overnight loans and deposits were decreased to 6.25 percent and, respectively, to 0.25 percent annually, IPN reports.
The required reserves ratio in Moldovan lei and non-convertible currencies was cut by 2.5 percentage points, while the required reserves ratio in freely convertible currencies was increased by 1.0 percentage points.
In a press release, the NBM says the decision comes to further strengthen the level of liquidity in the banking sector in support of the economy and business sector amid the recent developments in the global and national economy.
The National Bank will continue to monitor the situation and, if necessary, will come up with incentive measures to encourage the demand, maintain the sufficient liquidity level in the banking system and ensure the efficient transmission of its monetary policy.
For the purpose, the central bank will continue to use all available instruments to meet the objectives of price stability and to strengthen the banking sector that is well-capitalized and resilient.
