The National Bank of Moldova raised its benchmark interest rate by 50bps to 7 percent on June 19th 2019. It was the first hike in borrowing costs since September of 2015, mentioning upside risks to inflation caused by the increase in the wage bill and consumption credits. The central bank's decision aims to bring inflation closer to its 5 percent medium term target and is consistent with a positive fiscal impulse in the current and next year while expectations regarding the external environment have been taken into account. The overnight credit rate was also adjusted to 10 percent from 9.5 percent and the overnight deposit rate to 4.0 percent from 3.5 percent. Interest Rate in Moldova averaged 10.57 percent from 2001 until 2019, reaching an all time high of 21 percent in January of 2001 and a record low of 3.50 percent in April of 2013.
Interest Rate in Moldova is expected to be 7.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Moldova to stand at 7.00 in 12 months time. In the long-term, the Moldova Interest Rate is projected to trend around 7.00 percent in 2020, according to our econometric models.