The National Bank of Moldova unanimously raised its base rate by 200 basis points to 11%, citing intensifying inflationary pressures, robust domestic demand and an upwardly revised inflation outlook. The increase followed a reduction from 6% in November 2025 to 5% in December and renewed tightening from May 2026. Overnight lending, deposit and repo rates also rose, while reserve requirements remained unchanged. Annual inflation reached 8.6% in September, exceeding the tolerance band of ±1.5 percentage points around the medium-term target of 5%. The central bank expects inflation to rise through the end of 2026, decline from the first quarter of 2027 and return within the band in the third quarter of 2027. Larger anticipated adjustments to regulated tariffs and higher international energy and food prices contributed to the upward forecast revision. Sectoral indicators showed positive economic activity in the third quarter, while excess liquidity declined but remained relatively high. Geopolitical and trade tensions, energy-security risks and supply-chain vulnerabilities continued to pose external inflation risks. The central bank said it would monitor domestic and external developments and use its instruments as necessary to restore and maintain price stability.
National Bank of Moldova Raises Base Rate by 200 Basis Points to 11%
The National Bank of Moldova raised its base rate by 200 basis points to 11%, citing intensifying inflationary pressures, robust domestic demand and an upwardly revised inflation outlook. Annual inflation reached 8.6% in September and is expected to return within the 5% target’s ±1.5 percentage point tolerance band in the third quarter of 2027.