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photo source: bnm.md
Posted by: Alina Zlatov
News / Economic
08 June 2022 / 16:01
Octavian Armaşu: The optimal level of inflation for the Republic of Moldova is 5%
The optimal level of inflation for the Republic of Moldova is 5% ±1.5 percentage points, and the National Bank will use all monetary policy instruments to bring inflation to this level in the medium term, NBM Governor Octavian Armaşu said in an interview, reports Radio Moldova.
"All NBM instruments are used exactly to reach this 5 percent level. Currently, through restrictive monetary policy, the NBM creates conditions that encourage saving behaviour to the detriment of immediate consumption behaviour. It is obvious that high inflation slows down economic growth and erodes the purchasing power of the citizens," says the Governor Octavian Armaşu.
Governor Octavian Armaşu also stressed that inflation in the Republic of Moldova was largely imported.
"I will remind you that we have inflationary shocks from the outside that do not originate from the monetary policy of the NBM. They started with the problems created by the pandemic crisis and are now amplified by the war in Ukraine. With monetary policy, these inflationary shocks cannot be stopped, but that does not mean that the NBM's main objective of price stability has lost its relevance."
At the same time, Octavian Armaşu mentioned that in his capacity as Governor of the National Bank he was ready to explain the monetary policy decisions as many times as necessary.
Governor Octavian Armaşu also stressed that inflation in the Republic of Moldova was largely imported.
"I will remind you that we have inflationary shocks from the outside that do not originate from the monetary policy of the NBM. They started with the problems created by the pandemic crisis and are now amplified by the war in Ukraine. With monetary policy, these inflationary shocks cannot be stopped, but that does not mean that the NBM's main objective of price stability has lost its relevance."
At the same time, Octavian Armaşu mentioned that in his capacity as Governor of the National Bank he was ready to explain the monetary policy decisions as many times as necessary.
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