May 8 (SeeNews) - Moldova's central bank BNM said it has revised downward its 2018 inflation projection by 0.4 percentage points to 3.3%.
In 2019, consumer prices are expected to rise by 4.9%, 0.2 percentage points more than projected earlier, the bank said in a press release late on Monday.
Moldova’s central bank targets 5% plus or minus 1.5 pp inflation.
Moldova's annual consumer price inflation slowed to 4.7% in March from 5.4% in the previous month.
The medium-term inflation forecast may be affected by the materialisation of pro-inflationary risks associated with the external environment, namely escalating geopolitical tensions as well as rising international prices for oil and other raw materials, the bank commented.
Factors which may contribute to a downward inflation are major trade tensions between the US and China and significant moderation in the pace of global and regional economy activity, it added.
On Thursday, BNM decided to maintain its key rate at 6.5%, striving to keep inflation close to the target level.
"Keeping the key rate at the current level is justified by the disinflationary pressures that will persist for the most part of the current year and by economic growth of over 3%," BNM said.
BNM last revised its key monetary policy rate in December, lowering it by 0.5%, to 6.5%.
(1 euro =19.8897 Moldovan lei)