Moldovan central bank reverses tightening cycle
Unscheduled decision marks end to long series of hikes despite rising inflation and falling currency
Moldova’s central bank cut its policy rate at an unscheduled meeting today (December 5), ending a long series of hikes.
Governor Octavian Armasu announced the National Bank of Moldova was cutting the rate by 150 basis points, from 21.5% to 20%. The cut came despite high and rising inflation, and a fall in the country’s currency.
The move appears to mark the end of a lengthy tightening cycle by the NBM, which began hiking in July 2021 from 2.65%. It went on to raise the rate 10 times in total
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