NBM EXECUTIVE COMMITTEE REDUCES PRIME RATE TO 3.6%

The National Bank of Moldova lowered the prime rate applied to the main short-term monetary policy operations by another 0.15 p.p., down to 3.6% per annum - to 3.6% per annum. As INFOTAG reports, this was announced by NBM Governor Anca Dragu at the meeting of the Economic Press Club following the meeting of the Bank's Executive Committee.

According to Dragu, the interest rates on overnight loans and deposits were reduced by the same amount - to 5.60% and 1.60%, respectively. Also, it was decided to reduce from 33% to 31% of the calculated base the norms of mandatory reserves to the attracted funds in Moldovan lei from June 16 to July 15, and from 31% to 29% - from July 16 to August 15.

As for the norms of required reserves to attracted funds in non-convertible currency, they will decrease from June 16 to July 15 from 43% to 41%, and from July 16 to August 15 from 41% to 39%.

“The reduction of the prime rate applied to the main short-term monetary policy operations is meant to support demand and stimulate consumption, to keep inflation within the target corridor of 5% ±1.5%, which is the optimal indicator for the growth and development of the Moldovan economy in the medium term,” the governor of the National Bank stated.

According to the Executive Board, this decision “continues the easing of the monetary policy that started in December 2022 and its effect will continue to spread gradually through the reduction of interest rates on the money, deposit and credit markets”.