The National Bank of Moldova maintains the base rate at 3.6% annually. In order to increase the predictability of monetary policy and keep inflation in the medium term within the target range, the central bank decided to reduce the required reserve ratio for two consecutive periods. The decisions were approved by the Bank's Executive Board on Thursday, IPN reports.

"The decision is part of the NBM's efforts to continue the implementation of monetary policy measures so that these measures produce an effect," the Bank explains in a press release.

The required reserves from the means attracted in Moldovan lei and in non-convertible currency for the period between December 16, 2024 and January 15, 2025 decreases by two percentage points. Subsequently, from January 16, 2025 to February 15, 2025, the reserve ratio will be reduced from 25% to 22%.

Also, the required reserves from the means attracted in freely convertible currency decreases from 36% to 34%. From January 16, 2025, for one month, the ratio will decrease from 34% to 31% of the calculation base, said the NBM.

The decision to concomitantly reduce the required reserve ratio in lei and foreign currency will reduce lending costs, further supporting the lending process and beneficially influencing the national economy.

"The NBM will continue to monitor the macroeconomic situation with caution both internally and externally and, depending on the evolution of inflation, risks and uncertainties, the necessary measures will be taken to ensure price stability, which is the fundamental objective of the National Bank of Moldova," reads the Bank’s press release.