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.
Related Articles
S&P upgrades ratings of Freedom subsidiaries to ‘BB-’
S&P Global Ratings has upgraded the credit ratings of several subsidiaries of Nasdaq-listed Freedom Holding, raising ratings on Freedom Finance, Freedom Finance Europe, Freedom Finance Global and ... more
Kazakhstan’s Freedom fintech sets out to emulate and exceed Revolut in Europe
Freedom Holding Corp (Nasdaq: FRHC) is positioning itself to expand deeper into Europe’s financial services market with plans to launch a digital bank in France, backed by a €500mn ($572mn) ... more
Fintech Freedom Holding aims to make France key entry point into EU with €500mn investment
A French banking licence would open the way to a new phase in the international expansion of Nasdaq-listed fintech group Freedom Holding Corp. That’s the expectation of Freedom, a company ... more