The NBM kept the base rate applied to the main short-term monetary policy operations at 6.5% per annum
This decision was adopted by the Executive Board of the National Bank of Moldova (NBM) at the meeting held on March 20. The NBM also kept unchanged the interest rates on overnight loans at 8.5% per annum, on overnight deposits - 4.5%, and on repo operations - 6.75% per annum. The National Bank of Moldova also kept the norm of mandatory reserves, applied to the attracted funds in Moldovan lei and non-convertible currency, at the level of 22% of the calculation base, while the norm of mandatory reserves, applied to the attracted funds in freely convertible currency, remained unchanged at the level of 31% of the calculation base. As noted in the message of the National Bank, by the decision taken on March 20, it aims to consolidate inflationary expectations, return inflation to the range of ±1.5 percentage points from the medium-term inflation target of 5% and keep it within this range. The decision of the NBM is taken in the context of the slowdown of the inflationary process and the extension of the previously adopted restrictive monetary policy measures, the effect of which will continue, given the lag in their transmission. The NBM emphasizes that inflation will have a downward trend until the end of the current year against the background of aggregate demand below potential demand, which will continue to have a disinflationary impact on prices, as well as the softening of pro-inflationary expectations. The new macroeconomic information largely confirms the main assumptions and conclusions reflected in the February 2025 Inflation Report. The NBM stated that it will continue to closely monitor the internal and external macroeconomic situation, risks and uncertainties related to the development of inflation in the short and medium term, and will intervene at appropriate times by adjusting monetary policy instruments in order to achieve the fundamental objective of ensuring and maintaining price stability. The next meeting of the NBM Executive Committee on the promotion of monetary policy will be held on May 12, according to the approved calendar. It should be noted that the last time the NBM changed the base rate, applied to the main short-term monetary policy operations, on February 5, increasing it by 0.9 p.p. - from 5.6% to 6.5% per annum. This was the second increase in the base rate applied to the main short-term monetary policy operations this year, after the National Bank of Moldova increased it by 2 p.p. on January 10 - from 3.6% to 5.6% per annum. In general, in 2024 the base rate applied to the main short-term monetary policy operations changed 3 times. In particular, it was reduced from 4.75% to 4.25% from February 6, to 3.75% - from March 21 and to 3.6% per annum - from May 7, 2024. // 20.03.2025 - InfoMarket
