The NBM kept the base rate applied to the main short-term monetary policy operations at the previous level of 3.6% per annum
This decision was approved by the Executive Committee of the National Bank of Moldova (NBM) at a meeting on August 6. It also left unchanged the interest rates on overnight loans at the level of 5.6%, on overnight deposits - 1.6%, on repo operations - 3.85% per annum. Also, by the decision of the NBM, the required reserves ratio applied to the attracted funds in Moldovan lei and non-convertible currency was kept at 29% of the calculation base, while the required reserves ratio applied to the attracted funds in freely convertible currency was kept at 39% of the calculation base. According to the National Bank, when making decisions, the NBM took into account the gaps in the process of transmission of the effects of previous monetary policy decisions, as well as recent macroeconomic information, which largely confirms the main assumptions and conclusions of the NBM May report on inflation. The current assessment of real monetary conditions in the market of deposits, credits and foreign exchange market indicates a favorable situation for maintaining inflation within ±1.5 percentage points from the target of 5.0%. The NBM considers effective the implemented monetary policy measures - consecutive reduction of the base rate and reduction of the required reserves norms. In this regard, the current and projected volume of liquidity is expected to allow banks to lend to economic agents and population, as well as to invest in government securities. Thus, as the NBM notes, although there are risks to the annual inflation rate, it will remain within the range of variation during the forecast interval. Also, the Executive Committee of the National Bank approved the third Inflation Report this year, which analyzes the internal and external economic situation and explains the medium-term inflation forecast. The report will be presented to the public next week, on August 13. The NBM said it will continue to monitor internal and external economic developments to ensure price stability. The next meeting of the NBM Executive Committee on monetary policy promotion will be held on September 19, according to the approved calendar. It should be noted that at the previous meeting of the NBM, on June 20, the National Bank also kept the base rate, applied to the main short-term monetary policy operations, at the previous level of 3.6% per annum. Last time the NBM changed it on May 7, having reduced it by 0.15 p.p., from 3.75% to 3.6% per annum. In general, it has been changed three times this year. In particular, it was reduced from 4.75% to 4.25% on February 6, to 3.75% on March 21 and to 3.6% per annum on May 7. // 06.08.2024 – InfoMarket
