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Moldova's c-bank holds key rate at 7.5%

Moldova's c-bank holds key rate at 7.5% Moldova's national bank - BNM

CHISINAU (Moldova), October 31 (SeeNews) - Moldova's central bank has decided to maintain its key rate at 7.5%, aiming to keep inflation close to the target level, it said.

The decision was adopted taking into account recent macroeconomic developments as well as trends in monetary, financial, lending and deposit market developments, the central bank, BNM, said in a statement on Wednesday evening.

BNM also decided to maintain the interest rates on overnight loans at 10.5% per year and on overnight deposits at 4.5% per year.

The reserves ratio on deposits in local and non-convertible currency was kept unchanged at 42.5% and the required reserves ratio on deposits in freely convertible currency at 17.0% of the base.

Moldova posted annual consumer price inflation of 6.3% in September, up from 5.5% in the previous month.

BNM revised upwards its 2019 inflation projection by 0.1 percentage points (pp) to 5.0% in August. In 2020, consumer prices are expected to rise by 6.7%, up by 0.2 pp compared to the level projected in June.

On July 31, BNM decided to increase its key rate to 7.5% from 7.0%.

(1 euro= 19.433 Moldovan lei)