Moldova's central bank cuts key rate to 17% from 20%

BY Reuters | ECONOMIC | 02/07/23 09:43 AM EST

CHISINAU, Feb 7 (Reuters) - Moldova's central bank has cut its key interest rate to 17% from 20% as consumer price inflation has continued to slow, Central Bank Governor Octavian Armasu said on Tuesday.

Armasu said the central bank expected consumer price inflation to slow to 13.7% this year after peaking in 2022. He noted inflation slowed to 30.2% in December compared with 34.6% in October last year.

"The decision is based on disinflationary processes in the short term and it is aimed at supporting the national economy and businesses," he told a news briefing.

The central bank last cut the interest rate at the start of December.

Moldova's economy has been hit by the spillover from Russia's invasion of Ukraine almost a year ago, with high energy and food prices driving consumer inflation sharply higher in 2022. (Reporting by Alexander Tanas, writing by Olena Harmash, editing by Christina Fincher)

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