NBM may build up basic rate and amount of leu required reserve for commercial banks
The National Bank of Moldova (NBM) considers the possibility to increase the basic rate and the required leu reserve level in banks, pleading an expected strengthening of the inflationary pressure due to the economy restoration and even its faster growth.
During an interview with the Infotag's journalist, President of the NBM Dorin Dragutanu said it is possible to make respective changes in the money and credit policy, promising they "will not shock banks".
"So far, we only look attentively at the situation, assess it and do not exclude the possibility of an inconsiderable basic rate growth and an inconsiderable gradual increasing of bank required reserves in leu currency for the purpose to remove the market liquidity", Dragutanu said.
He said the market liquidity amount is 3.6 billion lei and it is provided in the form of certificates issued by the NBM and placed in banks now; but their emission to the market can have negative influence.
Dragutanu said it is possible that banks will start reducing deposit rates on conditions of a big liquidity, and can cause its outflow, which is very dangerous with a view to inflation and currency cataclysms.
"Thus and so, we are always ready to apply our instruments for liquidity sterilization", Dorin Dragutanu said.
The NBM President said the currency market situation is stable in all, which was not even influenced by political developments in the country.
He said he sees 3 reasons of the absence of any market reaction to the early parliamentary elections and its results.
"First of all, the market knew what it shall expect for; in the second place, economic agents face the future with an optimism; and in the 3rd place, one did not try to execute artificial manipulation at the market, which even could not be executed, because the National Bank has leverages of a cruel suppression against such attempts", the NBM President said.
Infotag's dossier: The NBM basic rate for main money policy operations was built up to 7% from 6% in March 2010 for the last time. The highest basic rate amount was observed in the beginning of 2001 - 20.5%, and the lowest in September 2009 - 5%.
The rate of required reserves in Moldovan leu currency and inconvertible currencies is 8%, which went down about 2 times for the last 2 years. The amount of required reserves that are deposited in the NBM under the 4% interest rate reached 1.248 million lei by the end on October 2010, which also went down over 2 times.
The National Bank forecasts the 7.8% inflation by the beginning of 2010, and 7.3% - for 2011 and 4.6% - for 2012.
Infotag
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