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Base rate on main monetary policy operations reduced to 3.60%

The National Bank of Moldova (NBM) decided to decrease the base rate on the main monetary policy operations by 0.15 percentage points to 3.60%. The Executive Board of the NBM also voted to decrease the required reserves ratio by 2 percentage points for both lei and foreign currency, IPN reports.

According to the NBM, these measures aim to stabilize inflation in the range of 5% (±1.5), which is considered the optimal level for Moldova’s economic growth and development in the medium term.

Thus, the central bank noted that it intends to further stimulate aggregate demand, encourage consumption, investments and balance the national economy. The effects will be transmitted in the coming period through lower interest rates in money, deposit and loan markets.

Also, there was approved the second inflation report that makes an analysis of the internal and external economic situation and provides the medium-term inflation forecast. The report will be released next week, on May 14.

According to the NBM, the current context shows that annual inflation decreased to the level of 3.9% in March 2024 or by 0.3 percentage points compared to December 2023, being insignificantly lower than expected. The deviation was mainly caused by the regulated prices, the delay in adjusting charges for medical services and the lowering of natural gas charges in February this year.

The trends anticipated in the previous rounds remain largely valid. The inflation forecast was slightly raised for the entire comparable period, with few exceptions. Forecast risks and uncertainties remain high, especially from the external environment.

The institution said it will continue to monitor the situation and, if necessary, adjust its monetary policy instruments to ensure price stability.

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