The required reserves ratio attracted in Moldovan lei and in non-convertible currency starting with the period of application of the required reserves in MDL - February 16, 2022 – March 15, 2022 - were raised by 2.0 percentage points to 28.0 percent of the calculation base. The decision was taken back in mid-January. The required reserves ratio from the attracted funds in freely convertible currency was maintained at the current level of 30.0 percent of the calculation base, IPN reports.
According to the National Bank of Moldova, the decision seeks to mitigate persistent inflationary pressures on the inflation process, creating preconditions for bringing inflation back within the range of the medium-term target range. Such measures are taken by the central banks that, following the intensification of inflation worldwide, review their inflation forecasts up for the next quarters.
The Executive Board of the National Bank of Moldova at its February 15 meeting unanimously decided to increase the core rate applied to major short-term monetary policy operations by 2.00 percentage points from 8.50 percent to 10.50 percent annually, and to increase the interest rates on overnight loans by 2.00 percentage points, to 12.50 percent annually, and on overnight deposits by 2.00 percentage points, to 8.50 percent annually.
“It should be clear that it is impossible to directly attack frontally this wave of inflation that comes from outside the country, which is called supply shock, by monetary policy measures. It is very hard or practically impossible to stop this by monetary policy measures. What we can do by such measures is to diminish the second-round effects, of the subsequent price rises. Another effect we want to obtain is for these shocks to be absorbed faster by the economy so that it swifter returns to normality,” National Bank governor Octavian Armașu stated in a news conference on February 15.
