Moldova's cbank cuts basic rate

The Moldovan central bank has cut its key base rate to 7 percent from 8 percent and lowered the obligatory reserves banks must keep.

The rate on overnight loans and long-term loans dropped to 9.5% and, respectively, 7% annually. The National Bank (BNM) argues its move by the descending trend of inflation. The deflation this year has been 2.4%, and 0.5% for the last 12 months. The bank lowered reserves to 10 percent from 14 percent of bank holdings in the domestic leu currency and to 12 percent from 14 percent in foreign currencies such as dollars and euros.

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