Some risks and uncertainties remain in Moldova regarding the medium-term inflation forecast – the NBM
The National Bank of Moldova reported this in its materials after the NBM Executive Committee adopted the last decision on monetary policy. As noted, it refers to the disinflationary aggregate demand, the vulnerability of domestic prices of fruits and vegetables to weather conditions in the coming period, the uncertainty regarding the volume of agricultural production in 2024-2025, the evolution of regulated prices, the tense situation at regional and global levels, the volatility of expectations regarding international quotations of raw materials and the EUR/USD parity. "Thus, although there are risks to the evolution of the annual inflation rate, it will remain within the range of fluctuations during the forecast period," the NBM said. It stressed that the NBM's decision to keep the base rate applied to the main short-term monetary policy operations at the previous level of 3.6% per annum was taken in the context that the existing monetary conditions contribute to keeping inflation within the range of ±1.5 percentage points from the target of 5%, the level considered optimal for Moldova's growth and economic development. // 07.08.2024 - InfoMarket.
