Moldova cuts refinancing rate citing Covid-19

By bne IntelliNews March 5, 2020

Moldova’s central bank, the BNM, cut the refinancing rate by 1pp to 4.5% on March 4, citing disinflation risks posed by the global Covid-19 coronavirus outbreak.

The decision to ease monetary policy is oriented towards supporting the aggregate demand that, within the transmission mechanism limits, will be passed through more channels, including the lending channel, BNM explained. Extraordinary board meetings to address unexpected developments were announced as possible.

Last December, BNM slashed the monetary policy rate by 2pp in an unexpected move broadly seen as aimed at helping the government with lower borrowing costs and slightly stronger economic growth rates.

The headline inflation was still 6.9% in January, but the BNM expects it to return within the 5%+/-1.5pp target band in Q2 and drop to 3% by the end of the year, according to the quarterly inflation report issued in early February.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Tashkent Stock Exchange reports decline in 1Q24 trading volume

Tashkent Stock Exchange (TSE) has released its results for 1Q24, revealing a significant decrease in trading volume y/y. The results report, compiled by the TSE and Avesta Investment Group, ... more

EIF signs guarantee agreements with 11 banks in Western Balkans, unlocking €750mn for small businesses

The European Investment Fund (EIF), part of the EIB Group, said on April 15 that it has signed guarantee agreements with 11 banks and financial intermediaries in the Western Balkans. These ... more

UniCredit sees modest growth and fiscal overshoot for Hungary in 2024

Hungary’s economic rebound will be modest this year, around 2%, and the return to potential growth is set to be postponed to 2025 with GDP expanding around 3.2%, according to UniCredit bank's ... more

Follow Us On

Most Read

  1. Iran vs Israel: Who is better equipped for war?
    5 days ago
  2. Saudi Arabia to scale back plans for Neom city
    9 days ago
  3. BREAKING: Iraq, Syria and Jordan close airspace amid Iranian strike on Israel
    5 days ago
  4. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    5 months ago
  5. PANNIER: Caspian military drills that exclude Russia and Iran have some people in Moscow asking questions
    7 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    20 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    24 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. UBN: Russia could take the Baltic states in 48 hours
    29 days ago
  5. BRICS announce a blockchain-based payment system to create a common currency
    22 days ago

Reports

Dismiss