The National Bank of Moldova increased the base refinancing rate by another 0.85 percentage points - from 4.65% to 5.5% per annum.
The corresponding decision was made by the Executive Committee of the NBM at an extraordinary meeting on monetary policy on October 5, with the aim of slowing down the growth of prices. In particular, the Executive Committee of the National Bank of Moldova voted to increase the base rate applied to the main short-term operations of monetary policy, from 4.65% to 5.5%. At the same time, the rate corridor was reduced by 0.5 percentage points - from 2.5% to 2%. Thus, the rate for overnight deposits will be 3.5%, and for overnight loans - 7.5%. In particular, the interest rate on overnight loans was increased by 0.35 percentage points - from 7.15% to 7.5%, and on overnight deposits - increased by 1.35 % - from 2.15% to 3.5%. The NBM stated that it continues measures to gradually tighten monetary policy in order to mitigate inflationary pressures generated by the effects of the second round of price increases at the world level, production and distribution costs, energy resources and food. Herewith, the NBM took into account the pressure from domestic aggregate demand, supported by an increase in household income (wage fund, social assistance, remittances, etc.) and an increase in consumer and mortgage loans. As noted in the NBM, the simultaneous decrease in the rate band with the increase in the base rate is calibrated to motivate consumers' preferences for savings from immediate consumption in the context of a noticeable revival of economic activity in the first 9 months of this year. The National Bank of Moldova announced that it will continue to closely monitor developments in the domestic and international environment and is ready to take the necessary measures to fulfill the fundamental goal of ensuring price stability. It should be noted that the last time the National Bank of Moldova changed the base refinancing rate was on September 3 this year, when it increased it by 1% - from 3.65% to 4.65% per annum. Meanwhile, it increased by 1 percentage point interest rates on overnight loans and deposits - from 6.15% to 7.15% and from 1.15% to 2.15%, respectively. At the same time, the National Bank then did not change the rate of required reserves from funds attracted in Moldovan lei and in non-convertible currency, as well as the rate of required reserves from funds attracted in freely convertible currency, leaving them at the same level, 26% and 30% of the calculation base, respectively. According to the schedule, the next meeting of the NBM on monetary policy was to be held on October 29 this year. //05.10.2021 – InfoMarket.
