The National Bank's board today raised the main interest rate on short-term monetary policy operations by 2 percentage points, from 17.5 to 19.5 percent per annum. This is the highest level the central bank's main interest rate has reached since Moldova proclaimed its independence in 1991.
Additionally, the interest rates on overnight loans and overnight deposits were raised, also by 2 percentage points, to 22.5% and 16.5% respectively.
The updated rates become effective on September 2.
Required reserves for accounts in lei and non-convertible currencies were also raised by 3 percentage points to 35%. Required reserves for convertible currency accounts were kept at 14%.
Contacted by IPN, economist Grigore Vieru explained the rates were raised in an attempt to keep prices stable.
Earlier the highest record for the refinancing rate was registered in 2008, when it hit 18.5%. It eventually reduced as the economy gradually recovered. It stood unchanged at 3.5% for a long period since April 2013, before being raised to 6.5% in December 2014. This year, this is already the sixth time the National Bank has raised its main interest rate.
