The National Bank of Moldova kept the basic refinancing rate at the same level of 2.65% per annum, but reduced the required reserve ratio on borrowed funds in lei by 2 pp. - to 30% of the calculated base.
The corresponding decision was made by the Executive Committee of the NBM at the meeting on monetary policy held on Friday. According to the National Bank, it kept the base rate applied to the main operations of short-term monetary policy at 2.65% per annum, and also left unchanged interest rates on overnight loans and deposits at 5.15% and 0.15%, respectively. At the same time, by the decision of the National Bank, the rate of required reserves on attracted funds in Moldovan lei and in non-convertible currency was reduced by 2 percentage points - from 32% to 30% of the calculated base. Herewith, the rate of required reserves at the expense of attracted funds in freely convertible currency remained at the same level and will also amount to 30% of the calculation base. As noted in the NBM, the decision is aimed at creating monetary conditions conducive to the return of inflation in the range of ± 1.5 percentage points from the target of 5%. This is a continuation of the measures to stimulate monetary policy adopted in the second half of last year. Thus, the decision is aimed at supporting the resumption of economic activity in order to maintain sufficient liquidity and, in particular, the trend towards an increase in lending to the real sector of the economy, as well as to reduce the cost of bank loans. Also, the decision of the NBM is aimed at reducing the risks associated with a negative fiscal impulse in the context of increasing political uncertainty. This decision is in line with the strategic goal of balancing the terms of financial intermediation in national and foreign currencies. The NBM emphasizes that it will continue to monitor the internal and external macroeconomic situation and, in due course, without prejudice to its fundamental goal of ensuring price stability, will take measures to maintain sufficient liquidity of licensed banks to support a viable and stable banking system. The next meeting of the NBM Executive Committee on Monetary Policy will be held on April 30. It should be noted that the last time the National Bank changed the base rate applied to the main short-term operations of monetary policy was on November 6, 2020, when it was reduced by 0.1 percentage points - from 2.75% to 2.65% and then reached a new record low. Herewith, the National Bank also lowered by 0.1 percentage points interest rates on overnight loans and deposits: on loans - from 5.25% to 5.15%, and on deposits - from 0.25% to 0.15%. // 05.03.2021 — InfoMarket.
