Moldova Central Bank Cuts Rates, Confident in Economic Growth
In a unanimous decision, the National Bank of Moldova (BNM) today charted a course for greater economic activity and anchored inflation expectations with a 0.5-percentage-point reduction in its key rate.
The base rate applied to primary short-term monetary operations now stands at 4.25%, signalling the BNM's confidence in Moldova's economic trajectory.
This move follows three consecutive months of inflation hovering close to the targeted 5.0%, prompting the BNM to solidify this favourable trend and foster further economic balance. As BNM Governor Anca Dragu emphasised at a press conference, "These adjustments aim to stimulate financial intermediation between banks and companies, ultimately enhancing financial stability."
Governor Dragu also acknowledged the continued presence of external risks and uncertainties, citing factors like regional tensions, supply chain disruptions, and the ongoing war in Ukraine. Nonetheless, the BNM's updated inflation forecast remains largely unchanged, anticipating an average annual inflation of around 4.7% in 2024 and 4.5% in 2025.
Translation by Iurie Tataru
