The NBM reduced the base rate applied to the main short-term monetary policy operations by another 0.5 percentage points - from 4.25% to 3.75% per annum.
This decision was made by the NBM Executive Committee at a meeting on March 21. As the head of the National Bank, Anca Dragu, noted at the briefing, the NBM reduced interest rates on loans and overnight deposits by 0.5 percentage points - from 6.25% to 5.75% and from 2.25% to 1.75% per annum. The required reserve ratio applied to funds raised in Moldovan lei and non-convertible currencies was maintained at 33% of the calculation base, and the required reserve ratio applied to funds raised in freely convertible currencies was left at 43% of the calculation base. Anca Dragu noted that the new decision on monetary policy adopted by the NBM meets the National Bank’s obligations to dynamically respond to economic evolution. According to her, the reduction in the base rate applied to the main short-term monetary policy operations is intended to support demand and stimulate consumption. “This decision means a reduction in the cost of loans, an excellent opportunity for consumers to refinance at more favorable rates, to invest in expansion and innovation,” noted the NBM President. Anca Dragu emphasized that the decision taken aims to keep inflation within the variable range of ±1.5 percentage points from the target of 5%, which is the optimal indicator for the growth and development of the Moldovan economy in the medium term. The NBM places emphasis on further stimulating aggregate domestic demand, stimulating consumption, investment, and balancing the national economy. Anca Dragu emphasized that the NBM continues the easing of monetary policy, which began in December 2022, and the expected effects of the new decision are a reduction in interest rates on loans and deposits. According to her, the National Bank will continue to monitor economic evolution in the country and abroad and, if necessary, all tools will be used to achieve the main goal - ensuring price stability. The next meeting of the NBM Executive Committee on the promotion of monetary policy will be held on May 7, 2024, according to the approved calendar. It should be noted that the last time the NBM Executive Committee changed the base rate applied to the main short-term monetary policy operations was at its meeting on February 6 this year, reducing it from 4.75% to 4.25% per annum. // 21.03.2024 — InfoMarket
