The board of the National Bank of Moldova (NBM) has kept the base rate on the main short-term monetary policy operations at the current level of 6% annually. The rates on overnight loans and deposits remain unchanged at 8% and 4% annually, respectively. Also unchanged are the reserve requirements both in lei and foreign currencies.

The decision was taken given that the stimulative effects of the measures previously adopted by the NBM are spreading, the institution said in a press release.

According to the central bank, the restrictive monetary policy measures taken during the past year have produced the desired effects. From October 2022 to June 2023, inflation dropped by more than 21 percentage points, from 34.6% to 13.2%. Inflation will continue to decrease further, coming close to the target of 5%, which is considered an optimal level for the economic development of Moldova.

During today’s meeting, the NBM board also discussed uncertainties and risks that persist both internally and externally, which currently, support the disinflationary trend. The National Bank will continue to monitor the internal and external macroeconomic situation and, depending on their development, will come up with new monetary policy measures for further reducing inflation and keeping it within the set targets.