The Banca Naţională a Moldovei slashed its base rate to 4.5% from 5.5%, citing domestic disinflation risks and global economic uncertainty as fears over the new coronavirus fears.

The bank also cut interest rates on overnight loans and deposits by 1.0 percentage point to 7.5% and 1.5%, respectively.

The central bank said the decision takes into account the external and internal risks associated with the national and global economy as well as additional sources of disinflationary pressures on the consumer price level amid the coronavirus outbreak.

The decision to ease monetary policy is focused on "supporting the aggregate demand that, within the transmission mechanism limits, will be propagated through more channels, including the lending one," the bank said in a statement.