Inflation in Moldova is now much lower than the target of 5%, it is below 1% and is approaching zero, but prices might rise in the country if the economy is restarted in 2021 – the National Bank of Moldova (NBM) says.
Governor of the National Bank Octavian Armasu stated this in an interview with the public national television. While answering the question on how the National Bank intends to ensure price stability in 2021 and maintain the inflation rate and what was the dynamics of economic activity in 2020, the Governor of the National Bank said that for the NBM the inflation target is 5%, but now it is less than 1% and maybe even closer to zero. “This is low inflation, which is a consequence of the fact that consumption has decreased, aggregate demand has decreased in Moldova, on a national scale, as well as around the world. The economies are now very closely interconnected, and our economy is now open. We are trying to support aggregate demand through monetary policy measures, but monetary policy is likely to have its limits in what it can do. At the moment, we are not worried about the sharp rise in prices. Perhaps we will have a rise in prices if we manage to restart the economy in 2021,” the head of the NBM said. // 12.01.2021 - InfoMarket.
