Annual inflation in Moldova will fall within the variation range of the target of 5% ±1.5 p.p. in October 2023.
As noted in the materials of the National Bank of Moldova, according to the latest forecasts, the annual inflation rate in Moldova in the III quarter of 2023 will fall to 9.2%, and in the IV quarter will be located within the range of variation of the target indicator, where it will remain until the end of the forecast horizon (II quarter 2025). The National Bank points out that the timely adoption of restrictive measures of monetary policy in 2022 led to a change in the dynamics of inflation. Thus, after the maximum value reached in October 2022 (34.6%), the inflation process reversed, and in June 2023 annual inflation fell to 13.2%. The containment of inflation and its outlook within the target range against the backdrop of excess liquidity and further interest rate cuts provides a positive outlook for economic activity. The National Bank emphasizes that in advance adjusts the conditions in the money, credit and currency markets, assuming the necessary configuration of monetary policy, thus seeking to keep inflation close to the target of 5% in the medium term and creating all the prerequisites for the implementation of a set of macroeconomic policies related to economic growth. The National Bank said that under these conditions, inflation is no longer a determining factor that could affect the decisions of economic agents and households regarding consumption and investment. The NBM noted that it will continue monitoring the internal and external macroeconomic situation, risks related to inflation dynamics and, depending on them, will propose new monetary policy measures necessary to maintain inflation near the target level in the medium term. As InfoMarket reported, the previous day, August 9, the NBM kept the base rate applied to main short-term monetary policy operations at the same level - 6% per annum. It also left unchanged the interest rates on overnight loans and deposits - 8% and 4% per annum, respectively. The next meeting of the NBM Executive Board on monetary policy is scheduled for September 19, according to the schedule approved earlier. // 10.08.2023 - InfoMarket.
