When will the monetary policy be relaxed, according to Octavian Armașu

The interest rate will be reduced depending on how the conditions will evolve, how the inflation rate will be. If the trend will be a sustainable one, Moldova is going to move to the relaxation of the monetary policy, explained the governor of the National Bank of Moldova, Octavian Armașu at the presentation of the Report on Inflation.

“When we raised the monetary policy rate at the beginning of August, this was a significant decision. The increase of the base rate by three percentage points and the rate of mandatory reserve norms, likewise, by three percentage points in two steps is significant”, Armașu pointed out.

According to the governor, quoted by bani.md, it is a step taken by the NBM to be the last increase, so as to ensure that the secondary effects of inflation are moderated, and when the moment of relaxation comes there will be no more processes inflationary to confuse the lowering of the rate.


“If we had taken a smaller step, to increase the monetary policy rate, we might come up with a new, smaller increase in two to three months. We took the decision in August that towards the end of next year we will have conditions for lowering the monetary policy rate”, Armașu stated.

On August 4, the NBM increased the base rate by three percentage points to 21.5%, for overnight loans, to 23.50 percent annually and for overnight deposits, to 19.50 percent annually.

The rate of mandatory reserves in lei was also increased by three percentage points, to 37% in the first stage and to 40% in the second stage. Freely convertible foreign exchange reserves were increased to 45% in two stages.

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