The National Bank of Moldova forecast an average annual rate of inflation of 10.1% for 2016, by 1.8 percentage points lower than the rate forecast last November. For 2017, the inflation was projected at 6.6%, IPN reports.
National Bank governor Dorin Dragutanu told a news conference that the rate of inflation was revised down due to the diminution of prices, especially the food ones. This diminution will be felt more by consumers towards this yearend and next year. The move also follows the lower pressure exerted by the regulated prices of energy resources as a result of the 40% decrease in the prices of oil products against last November.
“Thus, compared with November 2005, the rate of inflation will slow down and the slowdown will be swifter than we anticipated. The National Bank will analyze the information that will be furnished from different sectors of the economy so as to determine the moment when the monetary policy will start to be relaxed. We do not promise that the relaxation will begin next month or in a month, but, if we see that the data improve, this can happen until the end of 2016,” said Dorin Dragutanu.
The base rate set by the central bank on the main monetary policy operations is now 19.5%.
