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

Chisinau, 21 March /MOLDPRES/ - The executive committee of the National Bank of Moldova (BNM) has ruled, by unanimous vote, to reduce by 0.5 percentage points the basic rate applied to the principal operations of monetary policy for short term to the level of 3.75 per cent annually. BNM Governor Anca Dragu has made statements to this effect.       

At the same time, the interest rates on overnight loans were diminished by 0.5 per cent to the level of 5.75 per cent annually and on the overnight deposits – to the level of 1.75 per cent annually.   

„This is a decision which shows the commitment to dynamically respond to the present economic developments. We decreased the basic rate, in order to support the demand and simulate the consumption. This decision means lower costs for loans, an opportunity for the consumers to refinance the current debts at more advantageous rates and to invest in growth,’’ Anca Dragu said.  

The BNM governor also said the decision was aimed at maintaining the inflation within the variation interval +/- 1.5 percentage points from the target of 5 per cent, regarded as the optimum level for the medium-term economic growth and development of Moldova. ‘’Thus, BNM puts emphasis on the further stimulation of the aggregate demand, including through the encouraging of the consumption and investments. By the today’s decision, BNM continues the relaxation of the monetary policy, started in December 2022. The effects will be transmitted in continuation, gradually through the decrease of the interest rates on the monetary market, deposit market and credit market,’’ the official said.    

The last change of the basic rate on the principal operations of monetary policy was made in early last February, when it decreased by 0.5 percentage points.