National Bank of Moldova Maintains Key Interest Rate
The Executive Committee of the National Bank of Moldova (NBM) has unanimously agreed to keep the key interest rate for short-term monetary policy operations at 3.6% per annum. Additionally, the rates for overnight loans and deposits, as well as repo operations and the required reserve ratios, will remain unchanged.
Current Monetary Conditions Favor Inflation Control
According to the NBM, the current assessment of real monetary conditions in the deposit, credit, and foreign exchange markets suggests a favorable environment for maintaining inflation within a variation range of ±1.5 percentage points from the target of 5%.
Effectiveness of Monetary Policy Measures
The central bank believes that the implemented monetary policy measures, including the consecutive reduction of the key interest rate and the lowering of the required reserve ratio, have proven effective. In this context, both the current and projected liquidity levels will enable banks to provide loans to businesses and households, as well as to invest in Government Securities.
Inflation Risks and Projections
Despite the existing risks to the annual inflation rate’s trajectory, it is expected to remain within the established variation range throughout the forecast period.
