Moldova hikes key rate to 10.5%

Banking

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The National Bank of Moldova raised its benchmark interest rate by 200 basis points to 10.5% on Tuesday to curb inflation and bring it down its targeted range of 5 +/- 1.5% in order to stabilize the economy, according to a report by Trading Economics. 

It was the fifth consecutive hike in base rate.

Consumer prices increased by 16.6% on the year in January, the highest since May of 2008 and far above the central bank's target, pushed up by expensive energy imports.

At the same time, the overnight deposit rate rose by 200 basis points to 8.5%, while overnight credits also rose by 200 basis points to 12.5%.

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