The NBM keeps the base rate applied to main short-term monetary policy operations at the same level - 6% per annum.
This decision was adopted by the Executive Committee of the National Bank of Moldva (NBM) at a meeting on August 9. The National Bank also left unchanged the interest rates on overnight loans and deposits - 8% and 4% per annum, respectively. Also, the norms of banks' required reserves in lei (MDL) and foreign currency remained unchanged. In particular, the norm of required reserves from funds attracted in MDL and non-convertible currency was maintained at the current level - 34% of the calculation base, while the norm of required reserves from funds attracted in freely convertible currency - 45% of the calculation base. As the NBM notes, the decision on monetary policy was made under conditions in which the stimulatory effects previously adopted by the NBM are still spreading. At the same time, it is seen that the restrictive measures of the monetary policy, undertaken by the NBM last year, have taken effect. Thus, from October 2022 to June 2023, the annual inflation rate decreased by more than 21 points, from 34.6% to 13.2%. The National Bank notes that inflation will continue to decline, approaching the target level of 5%, which is considered optimal for Moldova's growth and economic development. This trend will provide positive prospects for the economic activity. As the National Bank specifies, under these conditions, inflation is no longer a determining factor that could influence the decisions of economic agents and households regarding consumption and investments. Further reduction of interest rates on loans is expected. During today's meeting of the NBM Executive Committee, that also approved the third Inflation Report, the uncertainties and risks that persist both inside and outside the country were discussed. Currently, they support the disinflationary trend. The National Bank of Moldova stated that it will continue monitoring the internal and external macroeconomic situation and, depending on its development, will propose new monetary policy measures necessary to restore and maintain inflation at the target level. The next decision on monetary policy will be made in September. As InfoMarket reported earlier, at its last monetary policy meeting on June 20, the NBM reduced the base rate applied to main short-term monetary policy operations by 4 p.p. - from 10% to 6% per annum. Earlier, on May 11, the National Bank reduced it also by 4 p.p. - from 14% to 10% per annum, on March 20 - by 3 p.p. - from 17% to 14% per annum, and on February 7 - also by 3 p.p. - from 20% to 17% per annum. It is noteworthy that before that the NBM reduced the base rate applied to main short-term monetary policy operations only on December 5, 2022, decreasing it by 1.5 p.p. - from 21.5% to 20% per annum. Before that, it had not been cut for 2 years, since November 6, 2020, when it was reduced from 2.75% - to 2.65% per annum. Since then, until December 5, 2022, it has only increased, reaching 21.5% in August 2022. // 09.08.2023 - InfoMarket.
