Governor of National Bank of Moldova unveils report on inflation

Chisinau, 6 August /MOLDPRES/-  Governor of the National Bank of Moldova Octavian Armașu presented today the Inflation Report No3, 2021, which denotes a change in trend in the economy. The head of the central bank referred especially to the situation in the internal and external environment, the evolution of the inflationary process and economic activity, as well as other aspects related to the conduct of monetary policy.

Octavian Armașu also presented the inflation forecast for the next eight quarters, the associated risks and uncertainties, as well as spoke about the monetary policy decisions taken by the BNM Executive Committee.

The updated forecast indicates the risk of inflation exiting the upper limit of the target range in the pro-inflationary context of the pronounced external environment. It is marked by the faster-than-expected recovery of the world economy and the main foreign trade partners of the Republic of Moldova, as well as by high global quotations for oil, raw materials and food.

At the same time, inflationary pressures are supported by aggregate domestic demand. It is fueled by the recovery of the population's consumption in the conditions of the increase of the salary fund in the economy, of the volume of new loans granted and of the transfers of funds in favor of the natural persons.

Following the external and internal developments mentioned, it is expected that the annual inflation rate will increase rapidly until the first half of next year, then will decrease towards the end of the forecast horizon.

The BNM governor mentioned that the inflationary process will be long.

photo: bnm.md