September 13 (SeeNews) - Moldova's central bank decided to hold its policy rate at 21.5%, it said on Tuesday.
The decision aims to temper the rapid rise in consumer prices, mitigate the secondary effects of supply shocks, stimulate financial intermediation in national currency and saving against consumption, and anchor inflationary expectations, the central bank, BNM, said in a press release.
Interest rates on overnight loans and deposits will remain at 23.5% and 19.5% per annum, respectively.
The decision also comes in the context of the propagation of the effects of restrictive monetary policy measures adopted previously, the BNM added.
This is the highest level of the key rate since 2001, data posted on the BNM's website shows. The central bank began raising interest rates in July 2021, when the policy stood at was 3.65%.
On a monthly comparison basis, Moldova's consumer prices rose 0.89% in August after an increase of 1.39% in July, the country's office of statistics said last week. In annual terms, however, Moldova's consumer price inflation accelerated to new 23-year high of 34.29% last month, from 33.55% in July.
The BNM's executive board will hold its next monetary policy meeting on November 8.
(1 euro = 19.6314 Moldovan lei)