The National Bank of Moldova has kept the basic refinancing rate at the same level of 5.5% per annum.
The corresponding decision was made by the NBM Executive Committee at the meeting on monetary policy on the evening of October 29. In particular, the Executive Committee of the National Bank of Moldova voted to maintain the base rate applied to the main short-term operations of monetary policy at the current level of 5.5% per annum. As noted in the Central Bank, at the same time, the NBM took into account the pressure from the supply side and the domestic aggregate demand (which manifested itself especially in the last 4 months), supported by the growth of income the volume of consumer and mortgage loans. As the NBM emphasizes, herewith, an important factor in today's decision is the uncertainty associated with the global energy crisis - the rise in prices for natural gas and oil on the international market, which will slow down global economic activity, which will affect domestic demand and economic activity. The Central Bank notes that the settlement of the ongoing energy crisis is closely linked to the actions of the Moldovan government to mitigate the consequences of the crisis, including the results of negotiations on the import of natural gas, which are currently difficult to predict. Thus, pro-inflationary risks increase and, accordingly, domestic economic activity slows down. The National Bank of Moldova announced that it will continue to closely monitor the development of the domestic and international environment and is ready to take the necessary measures to achieve the main goal - to ensure price stability. It should be noted that the last time the NBM changed the base refinancing rate was on October 5, when it increased it by 0.85 percentage points - from 4.65% to 5.5% per annum. Meanwhile, 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 percentage points - from 2.15% to 3.5%. Herewith, 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. // 29.10.2021 - InfoMarket
