The annual inflation rate and core inflation will increase rapidly in the first half of the year, after which they will moderate. In February, the NBM will publish the first Inflation Report for 2022 and the information will be updated according to the latest data, the Governor of the National Bank of Moldova Octavian Armașu said in a cumulative interview.
The governor noted prices have risen everywhere, it is a global phenomenon. In order to prevent them from moving totally out of the control, the NBM paid much attention to local and external developments and always made thoughtful and calculated decisions. The National Bank came up with monetary policy measures that mitigated pro-inflationary risks and pressures. Restrictive measures were required in the second half of last year, when there was uncertainty associated with the energy crisis - rising gas and oil prices on the international market that slowed global economic activity with repercussions on domestic demand and economic activity.
The National Bank will continue to carefully monitor the evolution of the consumer price index. The arsenal of monetary policy instruments will be applied so that inflationary pressures are mitigated as much as possible. The results at the country level, regardless of the type of phenomena or developments taking place, do not depend only on one institution, requiring joint efforts by all authorities, within the limits of their competences.
The NBM has taken and will take all necessary measures to bring inflation back (measured by the consumer price index) close to the 5.0 percent annual target with a possible deviation of ±1.5 percentage points. This level is considered optimal for the economic growth and development of the Republic of Moldova on medium-term and is provided as a target in the Monetary Policy Strategy of the National Bank of Moldova in order to ensure and maintain price stability over the medium term. If the NBM reacted aggressively to bring faster inflation back close to the target rate, so the direct effects on real economy would do more harm than good (economic costs would be very high).
