The proactive and determined approach taken by the National Bank of Moldova (NBM) to combat inflation has proven effective and is yielding positive outcomes, according to Clara Mira, the recently appointed IMF Mission Chief for Moldova. In an interview with the INFOTAG News Agency, she emphasized that the inflation rate, which had reached a significant peak of nearly 35% in October 2022, has since shown signs of deceleration.
Mira highlighted, “Lately, we have observed a consistent decline in core inflation. Concurrently, the ramifications from crises have been successfully contained, and inflationary expectations are being managed.”
The IMF’s representative for Moldova acknowledged that the NBM’s resolute and credible actions, coupled with a more stringent fiscal policy than initially anticipated and more favorable global prices for energy and food, have collectively contributed to a swift disinflationary trajectory.
“In anticipation of a rapid reduction in inflation, the NBM has shifted towards a more accommodating monetary policy stance. Going forward, it remains crucial for the central bank to persist in its endeavors to bring inflation back to the desired target level. Flexibility in adjusting actions based on incoming data and revised forecasts will be key,” opined Clara Mira.
She further asserted that curbing inflation constitutes the most effective measure the NBM can take to uphold macroeconomic stability and safeguard the most vulnerable segments of the population in any nation, as inflation essentially acts as a tax on those in poverty.
According to the new IMF Mission Chief for Moldova, the ongoing decline in inflation and the relaxation of monetary policy are poised to invigorate domestic demand, encompassing both consumer spending and investment.
“While also factoring in that fiscal policy is projected to be more expansionary than in the previous year, we anticipate witnessing a gradual recovery in GDP growth during 2023,” Clara Mira projected.
Background information on Clara Mira: With an extensive tenure of over 15 years within IMF structures, Clara Mira brings a wealth of experience to her current role. Her professional background includes prior positions at the European Commission and the Central Bank of Spain before joining the International Monetary Fund.