NBM LOWERS BASE RATE BY 0.5%

As participants of the Moldovan capital market forecasted, the National Bank of Moldova Executive Committee lowered the main monetary policy instrument rates.

According to the NBM press service, the base rate was lowered to 6.5% from 7%. Also, the regulator lowered the rate on overnight credits it provides to commercial banks. From 10% the rate fell to 9.5%. The rate on overnight deposits fell to 3.5% from 4%.

However, the required reserve ratio from funds attracted in the national currency and in nonconvertible currencies was left at 40%, while in convertible - at 14%.

The Executive Committee's decision says that the monetary policy indicators were adopted on the basis of macroeconomic analysis, as well as the inflation forecasts in short-term and mid-term period. The NBM forecasts that the inflation will stay within the targeted corridor of 5% В± 1.5%. In October its annual rate accounted for 7.9%.

The next Administrative Board meeting on monetary policy will take place on December 27.