The actions of the National Bank to curb inflation were belated, - Dumitru Alaiba.
This opinion was expressed by the deputy of the Action and Solidarity party, the head of the parliamentary commission on economy, budget and finance, during a public debate on price increases and inflation from political, economic and social points of view. He recalled that a record inflation rate (more than 27%) was registered in Moldova, and our country ranks second in the region after Turkey. One of the internal reasons for this increase in inflation, Alaiba called the belated or insufficient actions of the National Bank: while in some countries regulators began to tighten monetary policy measures back in January-March 2021, the National Bank of Moldova began to take measures only in September. He also pointed to the role of panic in society, caused, among other things, by not quite correct communications. “People see uncontrolled price increases and don't know what to expect. We must explain to citizens what is happening and what different state institutions are doing in accordance with their competencies in order to stop price increases,” Alaiba said. According to him, another reason for rising inflation was consumer loans that got out of control, primarily in the non-bank financing market, where loans were provided to customers at unreasonable interest rates. Alaiba specified that, thanks to the recently adopted bill, the appetites of non-bank financial institutions will greatly decrease, as the responsibility of not only of clients, but also of companies providing non-bank loans will increase. The deputy named the war on the Moldovan border as external factors for the growth of inflation, which violated the traditional supply chains: our country was highly dependent on the Odessa port, which is now closed. The overland route to Russia and Belarus via Ukraine is now unavailable, and the only route through Romania is difficult due to heavy traffic. Alaiba named energy prices as the biggest difficulty, which provoked a chain increase in prices, and separately he pointed to monopolists and speculators who influence pricing. Vice-Chairman of the Commission on Economy, Budget and Finance, deputy of the Bloc of Communists and Socialists Petr Burduzha partially agreed with Alaiba's opinion. In his opinion, the National Bank can only be partially responsible for the growth of inflation, and the government should have played an important role. He noted that some events have no economic explanation. For example, it is not clear how, with a record grain harvest in 2021 and an increase in the offer, prices continued to rise. With the rise in prices for the production of goods, the incomes of citizens remain low, and the recommendations of the authorities to reduce consumption are incorrect. According to Burduja, the government should intervene in order to apply economic leverage, including by regulating supply and demand in the market.// 30.05.2022 — InfoMarket
