20 Mar 2023 19:44

National Bank of Moldova again significantly reduces base rate - to 14% p.a

CHISINAU. March 20 (Interfax) - The National Bank of Moldova (NBM) has reduced its base rate 3 percentage points from 17% to 14% per annum, the central bank's press service reported.

The National Bank also reduced the rate on overnight deposits 3 p.p. from 15% to 12% and on overnight loans from 19% to 16%.

The regulator explained its decision by the need to stimulate demand, as well as being due to a slowdown in inflation.

As previously reported, the NBM also reduced the base rate by 3 percentage points last month to 17% from 20%.

The National Bank of Moldova in December 2022 for the first time in 2 years lowered the base rate from 21.5% to 20%. Since November 2020, the base rate has increased 10 times and increased from 2.65% to 21.5% as of August 2022.

In the second half of 2021, Moldova experienced a rapid rise in inflation. In 2022, the country faced a 20-year record consumer price increase of 30%.