December 15 (SeeNews) - Moldova's central bank said it decided to keep its monetary policy rate unchanged at 4.75% after cutting it from 6% in November.
Interest rates on overnight loans and deposits were also left unchanged, at 6.75% and 2.75% per annum respectively, the central bank, BNM, said in a press release on Thursday.
This decision is aimed at maintaining monetary conditions to stimulate aggregate demand by encouraging consumption, balancing the national economy and anchoring inflationary expectations.
Moldova's annual inflation eased to 5.5% in November, entering the central bank's medium-term target range of 3.5%-6.5% and narrowing by a larger margin than anticipated. The deviation was mainly caused by regulated prices and a higher-than-expected decrease in food prices.
Moldova's sustained tightening of its monetary policy for a year and a half until the end of 2022 is seen to have made a significant disinflationary contribution.
The balance of risks to the central bank's inflation forecast is even, with a slight inclination towards pro-inflationary pressures in the near term. Uncertainties revolve around geopolitical tensions, the adjustment of tariffs for energy resources and the statistical reflection of related compensations. Higher external costs with a delayed effect on the internal market also pose risks. Key interest rates are expected to narrow in advanced economies, in line with the easing of inflationary pressures. The central bank expects a decrease in price fluctuations related to raw materials and energy resources.
(1 euro = 19.1677 Moldovan lei)