Moldova Central Bank Keeps Rates Unchanged For Fourth Month

(RTTNews) - Moldova's central bank kept its key interest rate unchanged for the fourth month in a row in August.

The board decided to maintain the base rate at 3.5 percent, the National Bank of Moldova said in a statement on Thursday. The previous change in the rate was a 100 basis points cut in April, from 4.5 percent.

The interest rate on overnight loans was held at 6.5 percent, while the rate on overnight deposits was maintained at 0.5 percent.

The reserve requirement on liabilities in both Moldovan leu and foreign currency was held at 14 percent.

Inflation sharply slowed to a four-month low of 4.3 percent in July from 5.5 percent in June, largely due to lower food prices. The rate has held within the central bank's target range of 1.5 percentage points above or below 5 percent for the last 18 months, the bank said.

Meanwhile, core inflation was 4.4 percent in July, unchanged from June.

The Moldovan economy grew 3.5 percent in the first quarter after a contraction in 2012. Citing preliminary data, the bank said growth continued in the first half of the year.

However, it is too early to determine whether the economic recovery is sustainable, the bank added.

The next monetary policy meeting is scheduled for September 26.