National Bank of Moldova slashes base rate again, this time 3 pp to 17%

21:11, 07.02.2023 1 min read

The National Bank of Moldova (NBM) Executive Committee Tuesday decided to lower the base rate from 20% to 17%, NBM Governor Octavian Armasu told reporters after the meeting.

The National Bank also reduced the rates on overnight deposits from 18% to 15% and on overnight loans from 22% to 19%.

The factors behind the decision included the need for consumer demand to recover amid a forecast drop in the rate of inflation, Armasu said.

The NBM lowered the base rate for the first time in two years in December 2022, from 21.5% to 20%. The rate had been hiked on ten occasions since November 2020, rising from 2.65% at the time to 21.5% in August 2022.

Inflation in Moldova started to rise rapidly in the second half of 2021. Consumer prices rose 30% in 2022, the most for 20 years.