National Bank of Moldova reduces basic rate at principal monetary policy operations

Chisinau, 20 June /MOLDPRES/ - The basic rate applied on the principal short-term monetary policy operations has been established at 6 per cent annually, against 10 per cent earlier. A decision to this effect was taken by the executive committee of the National Bank of Moldova (BNM) today.    

At the same time, the rates of interest on the overnight loans were set at 8 per cent annually (against 12 per cent earlier) and on overnight deposits – at 4 per cent annually (against 8 per cent earlier).   

According to BNM, the concerned decision is conditioned by the confirmation of the hypotheses and conclusions considered within the forecast for April 2023 and by the tendency of diminution of the annual inflation rate, under the impact of the pronounced disinflation pressures on behalf of the internal and external demand.   

”This decision continues the string of stimulating measures adopted by BNM on the last period and is aimed at creating monetary conditions necessary to re-bring the inflation to the variation interval of ± 1.5 percentage point from the inflation target of 5 per cent and to maintain it in this interval for medium term. BNM’s decision is aimed at backing the balance of the national economy through the creation of monetary conditions for the revival of the crediting, in the context of the diminution of the costs related, reviving the consumption, thus contributing to the boosting of the aggregate demand,’’ BNM noted.       

The last change of the basic rate, applied on the principal monetary policy operations, was carried out in early 2023.  

Photo: BNM