The Executive Committee of the National Bank of Moldova (NBM) unanimously agreed to reduce the basic rate applied to the principal operations of monetary policy for the short term by 0.5 percentage points, bringing it to 3.75 percent annually. NBM Governor Anca Dragu officially announced this decision.
Concurrently, the interest rates on overnight loans were also decreased by 0.5 percent to 5.75 percent annually, and on overnight deposits to 1.75 percent annually.
“This decision underscores our commitment to proactively respond to current economic developments. By lowering the basic rate, our objective is to strengthen demand and stimulate consumption. This translates to reduced borrowing costs, offering consumers the opportunity to refinance existing debts at more favorable rates and invest in growth,” stated Anca Dragu.
The governor emphasized that the decision aimed to maintain inflation within the target range of +/- 1.5 percentage points from the 5 percent target, which is considered optimal for Moldova’s medium-term economic growth and development.
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“Hence, the NBM is focused on further stimulating aggregate demand, including by promoting consumption and investments. With today’s decision, the NBM continues the monetary policy easing initiated in December 2022. The effects will gradually permeate through the reduction of interest rates in the monetary, deposit, and credit markets,” she added.
The last adjustment to the basic rate for principal monetary policy operations occurred in early February when it was lowered by 0.5 percentage points.