The Executive Committee of the National Bank of Moldova on Monday decided to reduce the base rate from 21.5% to 20.5%, the head of the National Bank Octavian Armasu said at a press conference.
The rates on overnight deposits (to 18%) and overnight loans (to 22%) were also reduced by 1.5 percentage points.
According to Armasu, the reason for this decision is the forecasts regarding disinflationary trends in Moldova. According to the National Bank, inflation will peak in the last quarter of 2022.
This year, Moldova recorded the highest inflation in 20 years. In October, annual inflation reached 34.62%. According to the forecasts of the National Bank, inflation will enter the corridor of 5% plus or minus 1.5 percentage points. only in the second quarter of 2024.
Since November 2020, the base rate in Moldova has increased 10 times and increased from 2.65% to 21.5% (from August 2022).