July 27 (SeeNews) - Moldova's central bank, BNM, said it will maintain its key rate at 8.0%, striving to keep inflation close to the target level.
"This decision is aimed at anchoring inflation expectations in the context of restoring and maintaining the inflation rate close to the target of 5.0% in the medium term, with a possible deviation of plus or minus 1.5 percentage points," BNM said in a statement late on Wednesday.
BNM added that the decision was based on the dynamics of the latest macroeconomic indicators, which outline the premises for moderated economic activity and a decrease of medium-term inflationary pressures. At the same time, there are signs of moderate over-appreciation in real terms of the national currency, it added.
Moldova's consumer price inflation decelerated slightly to 7.3% year-on-year in June, from 7.4% in May.
The central bank projects 6.5% inflation in Moldova in 2017 and 4.4% in 2018. Previous BNM projections put inflation at 6.8% in 2017 and 5.1% in 2018.
On Wednesday, BNM also decided to keep interest rates on overnight loans and deposits at 11% and 5%, respectively.
The central bank also kept the required reserves for deposits in freely convertible currency at 14% and the required reserves for deposits in Moldovan and other non-convertible currency at the current level of 40%.
"In order to support the proper functioning of the interbank money market, the BNM will continue to manage firmly the excess liquidity through sterilization operations, as scheduled," the central bank said.
BNM last revised its key monetary rate in June, lowering it by 1.0%, to 8.0%.
(1 euro = 21.1241 Moldovan lei)