NBM KEEPS MONETARY POLICY INSTRUMENT RATES UNCHANGED

The National Bank of Moldova Executive Committee preserved unchanged the main monetary policy instrument rates.

According to the NBM, the base rate on short term transactions was left at the level of 6.5%, on overnight deposits - at 3.5%, overnight credits - 9.5%. The required reserve ratio from funds attracted in the national currency and in nonconvertible currencies was also left at 42.5%, while in convertible - at 14%. The decision was taken on the basis of the latest macroeconomic analysis and the correction of the mid-term inflation forecast, which was raised to 3.3% from 3.2% in 2018 and to 5.4% from 4.9% in 2019. Also, the NBM forecasts a negative deviation of the GDP.

The preserving of the base rate was due to the disinflation pressure, which will preserve till the end of this year. In particular, in September the annual level of inflation accounted for 2.4%, which is twice lower than the NBM target range - 5% В± 1.5%. By the end of the year the inflation may fall to 1.9%.

The next Executive Committee meeting on monetary policy will take place on December 4.

Infotag's dossier: This is the sixth sitting year to date and all the six times the Committee is leaving the rates unchanged. In 2017, the base rate was lowered four times, the last time - on December 5 - by 0.5% (to 6.5%). The same concerns other monetary policy instrument rates.