The National Bank of Moldova reduced by another 0.1 percentage points the basic refinancing rate to a new historical minimum of 2.65% per annum.
The corresponding decision was made by the Executive Committee of the NBM at a meeting on Friday. The National Bank also lowered by 0.1 percentage points interest rates on overnight loans and deposits. In particular, NBM reduced the interest rate on overnight loans from 5.25% to 5.15%, and on overnight deposits - from 0.25% to 0.15%. According to the NBM, the decision is aimed at supporting the aggregate domestic demand, the lending process and the national economy as a whole and was adopted after the approval of the Inflation Report No. 4 for 2020 at today's meeting. According to the new round of forecasts, the annual inflation rate will slightly decrease until the end of this year, and starting from the second quarter of 2021 it will be on an upward trajectory, reaching the target inflation rate by the end of the forecast horizon. The last time the NBM changed the base rate applied to the main short-term operations of monetary policy was on September 9, when it was reduced by 0.25 percentage points - from 3% to 2.75%. The next meeting on the promotion of monetary policy will take place on December 9, 2020.The NBM stated that it constantly monitors the macroeconomic situation caused by the consequences of the pandemic, and, in due time, without jeopardizing its main goal of ensuring price stability, will take the necessary measures to maintain an adequate level of liquidity for licensed banks in support of a viable and stable banking system.// 06.11.2020 — InfoMarket.