Inflation in Moldova will exceed 10% in 2025 - NBM
This was stated by Anca Dragu, Governor of the National Bank of Moldova (NBM), in an interview with Bloomberg. She noted that Moldova is preparing for double-digit inflation this year against the backdrop of an aggravated energy crisis caused by Gazprom's decision to stop supplying gas to the Transnistrian region, from where the right bank of the Dniester received cheaper electricity from Moldavskaya GRES. “According to our estimates, we will reach double-digit inflation this year”, the National Bank head said. Anca Dragu said that after the NBM on January 10 increased the base rate applied to the main short-term monetary policy operations by 2 percentage points at once - from 3.6% to 5.6% per annum to combat soaring energy prices, the National Bank will wait for a new forecast in February before deciding on further measures in the monetary policy. It should be noted that natural gas prices in Moldova rose by 27.5% in December 2024, while annual inflation reached almost 7% (6.97% in the last 12 months). Electricity prices in Moldova increased by about 75% in early January. Anca Dragu said she expects to see single-digit inflation next year. She said the National Bank of Moldova will weigh its next policy moves against consumption and the business environment to avoid hurting the economy. “It is important how we manage our set of instruments,” said Anca Dragu, who advocated not raising rates too fast or too high. // 20.01.2025 - InfoMarket
