The Executive Board of the National Bank of Moldova (NBM) raised the base rate on main short-term monetary-policy operations by 150 bp to 6.50 % per annum on 7 May 2026, citing a sharply more inflationary outlook as the Middle East conflict lifts global energy, food and commodity prices and pushes projected consumer-price growth above the 5 % ±1.5 pp target band for several quarters. After cutting the base rate from 6.25 % in August to 5.00 % in December 2025 and keeping it unchanged in February and March 2026, today’s decision marks a decisive return to policy tightening. The interest-rate corridor was widened to 4.50 % on overnight deposits, 6.75 % on repo operations and 8.50 % on overnight loans, while required-reserve ratios remain at 18 % for MDL/non-convertible funds and 26 % for foreign-currency liabilities. Annual CPI accelerated to 5.81 % in March, within the target range for a third consecutive month but already 0.75 pp higher than in February; the NBM’s updated forecast now sees average inflation at 7.0 % in 2026 and 5.8 % in 2027, both notably above February projections. Early-year data signal a firming economy—industrial output rose 2.8 % y/y and retail trade 16.3 % in January-February, while excess liquidity swelled to MDL 5.2 bn in Q1. Externally, Brent oil and European gas prices have climbed and the US dollar has strengthened amid heightened geopolitical risk and weaker euro-area growth, intensifying imported inflation pressures. The central bank pledges vigi
National Bank of Moldova 2026-05-07
National Bank of Moldova raises base rate by 150 bp to 6.50 %
National Bank of Moldova raised its base rate by 150 bp to 6.50% and widened the corridor to 4.50–8.50%, halting a prior easing cycle as surging global energy and food costs push projected inflation above the 5% ± 1.5 pp target. March CPI hit 5.81%, with the bank now forecasting 7.0% average inflation in 2026 and 5.8% in 2027, keeping reserve ratios unchanged but warning of further action if required.