National Bank of Moldova cuts base rate to 17%
The Executive Committee of the National Bank of Moldova (NBM) today decided to reduce the base rate from 20% to 17%, NBM Governor Octavian Armasu told reporters after the meeting. Also, the National Bank cut the rate on overnight deposits from 18 per cent to 15 per cent and the rate on overnight loans from 22 per cent to 19 per cent.
Armashu said the factors that influenced the decision were "the need to restore consumer demand while predicting a lower inflation rate."
In December 2022, the National Bank of Moldova lowered the base rate from 21.5% to 20% for the first time in 2 years. Since November 2020, the base rate has been increased 10 times and rose from 2.65% to 21.5% (as of August 2022.
In the second half of 2021, inflation began to increase rapidly in Moldova. In 2022, the country faced a record consumer price increase of 30% in the last 20 years.