Moldova's c-bank raises key rate to 6.5%

BNM also increased its annual interest rates on overnight loans and deposits to 9.5% and 3.5%, from 7.5% and 1.5%, respectively, the bank said in a statement on Monday.

"In the current environment a gradual tightening of the monetary policy is necessary in order to fight inflationary pressures coming from regulated prices and the depreciation of the national currency," BNM said in the statement

The bank maintained the minimum reserve requirements on leu- and foreign currency-denominated liabilities of Moldovan commercial banks at 14%.

Moldova's annual consumer price inflation remained steady at 4.8% in November, within the central bank's target band, the statement added.

The central bank targets end-year inflation of 5.0% with a variation band of 1.5 percentage points on either side.

BNM last revised the key monetary rate on December 11, raising it to 4.5% from 3.5%.

The central bank board will hold its next monetary policy meeting on January 29.