The NBM raised the base rate applied to the main short-term monetary policy operations by another 3 percentage points - from 18.5% to 21.5% per annum.
This decision was made by the Executive Committee of the NBM at a meeting on August 4 to curb inflation and, as a result, return to economic growth. In addition, interest rates on overnight loans and deposits were also increased by 3 percentage points - from 20.5% to 23.5% and, accordingly, from 16.5% to 19.5% per annum. As noted in the message of the National Bank, in addition, the norms of required reserves will be gradually increased at the expense of funds attracted in Moldovan lei and non-convertible currency, as well as in freely convertible currency. In particular, it was agreed that the required reserve ratio from attracted funds in Moldovan lei and non-convertible currency during the application period from August 16 to September 15 will be increased by 3 percentage points - from 34% to 37% of the calculation base, and in the period from September 16 to October 15 - by another 3 p.p. - from 37% to 40% of the calculation base. At the same time, the required reserve ratio for attracted funds in freely convertible currency will be increased by 3 percentage points from August 16 to September 15 - from 39% to 42% of the calculation base, and in the period from September 16 to October 15 - by another 3 percentage points - from 42% to 45% of the calculation base. According to the NBM, the adopted decisions on monetary policy will stimulate savings against consumption and financial intermediation in the national currency, balance the trade balance and consolidate inflationary expectations. Herewith, the adopted monetary policy measures will support the decline in the consumer price index starting from the fourth quarter. The National Bank points out that there is a high probability that the measures taken will complete the phase of tightening monetary policy, if there are no major unforeseen shocks in the near future. “As soon as future forecasts outline reasonable prerequisites for easing monetary policy, the NBM will take the necessary measures to bring inflation closer to the target level of 5%,” the National Bank said. It noted that it would continue monitoring the inflationary process, assessing the risks and uncertainties associated with it, and take appropriate measures. At today's meeting of the NBM Executive Committee, the Inflation Review was also approved, which should be published next week. It should be noted that the last time the NBM changed the base rate applied to the main short-term monetary policy operations on June 3, having increased it then also by 3 percentage points - from 15.5% to 18.5% per annum. The next meeting of the Executive Committee of the NBM for the promotion of monetary policy will be held on September 13, according to the approved schedule. // 04.08.2022 — InfoMarket
