Moldova holds rate steady at 3.5%

    Moldova's central bank held its basic rate steady at 3.5 percent for the fifth month in a row, along with its other main rates, the rate on overnight deposits and the overnight lending rate, at 0.5 percent and 6.5 percent, respectively.
    The National Bank of Moldova last cut its rate in April by 100 basis points.
    Last month the central bank said the main risks is was facing were from deflation from Europe, Russia and international food prices while inflationary pressures could arise from a recovery in domestic demand and higher oil prices.
    Moldova's inflation rate eased to 4.3 percent in July from 5.5 percent in June, in line with the bank's forecast for this year. In 2014 inflation is forecast at 3.8 percent, below the bank's 5.0 percent target.
    Moldova's Gross Domestic Product expanded by an annual 3.5 percent in the first quarter, up from a 2.5 percent contraction in the previous quarter.

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