BNM cautious: Rate steady as inflation dips
The National Bank of Moldova (BNM) today adopted a measured approach, opting to keep the key policy rate unchanged at 4.75% per annum.
This decision reflects a nuanced balancing act between acknowledging recent positive developments in the inflation landscape and remaining vigilant against potential future risks.
"New macroeconomic data corroborate the validity of our latest forecast," declared BNM Governor Octavian Armasu. "While annual inflation has dipped below expectations to 5.5% in November, primarily driven by regulated food prices, a cautious stance remains essential."
The BNM's resolve to anchor inflation within its target range of 5% with a tolerance band of ±1.5% is evident in its decision. Despite the encouraging downward trend, with inflation shedding over 29 percentage points since its October 2022 peak of 34.6%, the bank remains mindful of external uncertainties and their potential impact on domestic price pressures.
"Future actions of the Executive Committee will be informed by updated inflation trajectories and evolving risk assessments," emphasised Armasu. "We will continue to monitor both domestic and international economic conditions with meticulous attention, prepared to take decisive measures if necessary to ensure inflation remains firmly within the target range."
Translation by Iurie Tataru
