National Bank of Moldova Raises Base Rate by 50 Basis Points to 7.50%

The National Bank of Moldova’s Executive Board unanimously raised the base rate by 50 basis points to 7.50% on August 6, continuing restrictive policy as robust consumer demand and persistent supply shocks drive inflation higher. Over the past year, the rate fell from 6.25% in August 2025 to 5.00% in December, before rising by 150 basis points in May 2026 and 50 basis points in both June and August. The central bank set overnight lending, repo and overnight deposit rates at 9.50%, 7.75% and 5.50%, respectively, while retaining reserve requirements at 18% for MDL and non-convertible currency funding and 26% for freely convertible currency funding. Annual inflation was 6.51% in June and is forecast to average 7.2% in 2026 and 6.2% in 2027, remaining above the upper bound of the 5% target’s ±1.5-percentage-point range through the second quarter of 2027 before returning within it in the third quarter. Economic activity is expected to grow faster in the second quarter than in the first, while new lending rose 13.1% year on year. Heightened geopolitical tensions, volatile energy prices and expected increases in international food prices remain key global inflation drivers. The National Bank of Moldova said it will continue monitoring domestic and external developments and use available instruments as needed to achieve price stability.