The governor of the National Bank of Moldova Anca Dragu said that the stabilization of inflation in the range of 5% (±1.5) confirms the effectiveness of the NBM’s strategy to stabilize prices. Presenting the second report on inflation in 2024, the governor said that the inflation index is maintained for the seventh consecutive month around the target set by the NBM, IPN reports.

The central bank’s forecasts indicate that inflation will continue to oscillate close to the target in the coming months. “Today, inflation is maintained at an optimal level for economic growth, being in the range of plus-minus 1.5 percentage points from the 5% target,” noted Anca Dragu.

According to the governor, the NBM responds quickly to economic changes, which leads to the stimulation of investments and creation of a favorable climate for the development of a sustainable economy.

“After a period of about two years, in the fourth quarter of 2023, the gross fixed capital formation saw positive dynamics, of +4%, supported by the evolution of investments made in “machinery and equipment”, which increased by 9.4%,” the governor added.

Anca Dragu also said that monetary policy decisions to reduce the base rate led to an increase in the volume of new loans granted in lei by 28.7 percent annually in the first quarter of 2024, mainly loans for consumption and real estate released to individuals.

At the last monetary policy meeting on May 7, the NBM lowered the base rate by 0.15 percentage points to 3.60% and decreased the required reserves ratio by 2 percentage points, continuing the efforts to restore domestic demand.