The key rate on the main short-term monetary policy operations remains unchanged at 3.6% annually, the National Bank of Moldova’s board decided today. Interest rates on overnight loans and deposits, repo operations, as well as mandatory reserve norms were also left unchanged.
The NBM said in a press release that the current assessment of real monetary conditions on the deposit, credit and foreign exchange market indicates a favorable situation for maintaining inflation within the range of variation of ±1.5 points against the target of 5.0%.
The NBM considers the implemented monetary policy measures to be effective: the consecutive reduction of the base rate and the reduction of the reserve requirement. The current and forecast volume of liquidity will allow banks to lend to businesses and individuals, as well as to invest in government bonds.
Thus, although there are risks to the evolution of the annual inflation rate, it will remain within the variation range during the forecast interval, the NBM said.
The central bank’s board approved the third inflation report, which provides an analysis of the domestic and external economic situation and explains the medium-term inflation forecast. The report will be released to the public next week, on August 13.
