OREANDA-NEWS. February 02, 2011. It is ready to toughen the monetary policy through using available tools, including by means of increasing the minimally required reserves to get the inflation back to the set interval, if the future forecasts reveal an increased risk of the excess of the set inflation limits for the short-term period, according to the National Bank of Moldova’s statement.

The National Bank will keep the adaptation character of the monetary policy corresponding to its fundamental task and will create adequate conditions for continuation of the deflation process in 2011 and for keeping the inflation within the short-term monetary policy strategy by the end of 2012. The National Bank reminded that to restrain inflationary expectations, its Administrative Board took a decision on January 27 to raise the norm of required reserves from funds attracted in Moldovan leis and foreign currency from 8% to 11% of the calculation basis and to keep the basic rate on the current level – 8%.

The decision to keep the current basic rate correlated with the growth of the minimal level of required reserves aims to enhance monetary policy transmission mechanism, to foster savings, to reduce GDP deviations and risks connected with the speculative receipt of capital and to create conditions for rising financial stability in the context of absorption of inflationary pressures and encouragement of sustainable economic growth.

The National Bank will continue firmly managing the excessive liquidity in the banking system by carrying out the sterilization operations to optimize the monetary policy transmission methods. According to the National Bank of Moldova, recovery of the global economy and the dynamics of the exchange rate, both of the local currency and curries of Moldova’s main trade partners, as well as the revival of our country’s economic, home consumption and money demand, along with the rise in the international oil prices, food prices and prices for natural gas entailed inflationary pressures for the whole period of this year.