The NBM has kept the base rate applied to main short-term monetary policy operations at 6.5% per annum
This decision was adopted by the Executive Board of the National Bank of Moldova (NBM) at its meeting on June 19. The NBM also left unchanged the interest rates on overnight loans at 8.5% per annum, on overnight deposits at 4.5%, and on repo operations at 6.75% per annum. The National Bank of Moldova also kept the reserve requirement ratio applied to funds attracted in Moldovan lei and non-convertible currency at 22% of the calculation base, and the reserve requirement ratio applied to funds attracted in freely convertible currency unchanged - 31% of the calculation base. As noted in the National Bank's statement, with the decision adopted on June 19, it intends to limit inflation expectations, return and keep inflation within ±1.5 percentage points of the inflation target of 5% in the medium term. The NBM's decision was taken in the context of easing inflationary trends and extending previously adopted restrictive monetary policy measures, the effects of which will continue to be felt, given the gaps in their transmission. The NBM notes that inflation will continue to decline until the end of this year, supported by aggregate demand remaining below its potential level, which will continue to have a disinflationary impact on price dynamics, as well as by the easing of inflation expectations. In these conditions, there is a reasonable probability that the NBM will end its current restrictive monetary policy cycle in the near future. The NBM stated that it will continue to closely monitor the domestic and external macroeconomic situation, risks and uncertainties related to inflation dynamics in the short and medium term, and will intervene at the appropriate time, adjusting monetary policy instruments to achieve its primary objective of ensuring and maintaining price stability. The next meeting of the NBM Executive Board on monetary policy will take place on August 7, according to the approved calendar. At its previous monetary policy meeting on May 12, the NBM kept the base rate applied to the main short-term monetary policy operations at 6.5% per annum. It should be noted that the NBM last changed the base rate applied to main short-term monetary policy operations on February 5, increasing it by 0.9 percentage points, from 5.6% to 6.5% per annum. This was the second increase in the base rate applied to main short-term monetary policy operations this year, after the National Bank raised it by 2 percentage points on January 10, from 3.6% to 5.6% per annum. Overall, in 2024, the base rate applied to main short-term monetary policy operations changed three times. In particular, it was lowered from 4.75% to 4.25% on February 6, to 3.75% on March 21, and to 3.6% per annum on May 7, 2024. // 19.06.2025 — InfoMarket.
