Moldova Central Bank Raises Policy Rate to 7%

2026-06-18 09:24 By Larissa Caser 1 min. read

The National Bank of Moldova raised its benchmark interest rate by 500 basis points to 7% in June 2026, bringing borrowing costs to the highest level since May 2023, citing concerns over rising energy, food and raw material prices.

Headline inflation rose to 6.8%, reaching its highest level since the start of the year and above the upper limit of the central bank's target range of 3.5%-6.5%.

Inflation expectations foresee an upward trend by year-end at 7%, with a decline thereafter to 5.8%.

Meanwhile, economic activity growth slowed sharply to 0.4% in the first quarter of 2026 from 3.6% in the prior quarter.

Looking ahead, uncertainty remains elevated amid ongoing geopolitical tensions, tariff adjustments, and the effects of newly implemented fiscal measures.

Future monetary policy decisions will continue to be guided by developments in the domestic and external macroeconomic environment, with the central bank standing ready to use all available instruments to preserve price stability.



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Moldova Central Bank Raises Policy Rate to 7%
The National Bank of Moldova raised its benchmark interest rate by 500 basis points to 7% in June 2026, bringing borrowing costs to the highest level since May 2023, citing concerns over rising energy, food and raw material prices. Headline inflation rose to 6.8%, reaching its highest level since the start of the year and above the upper limit of the central bank's target range of 3.5%-6.5%. Inflation expectations foresee an upward trend by year-end at 7%, with a decline thereafter to 5.8%. Meanwhile, economic activity growth slowed sharply to 0.4% in the first quarter of 2026 from 3.6% in the prior quarter. Looking ahead, uncertainty remains elevated amid ongoing geopolitical tensions, tariff adjustments, and the effects of newly implemented fiscal measures. Future monetary policy decisions will continue to be guided by developments in the domestic and external macroeconomic environment, with the central bank standing ready to use all available instruments to preserve price stability.
2026-06-18
Moldova Central Bank Raises Rates by 150bps
The National Bank of Moldova raised its benchmark interest rate by 150 basis points to 6.5% in May 2026, marking its first rate hike since early 2025 and bringing borrowing costs back to levels last seen in 2025. The central bank said the decision was driven by the need to calibrate monetary policy to contain mounting inflationary pressures stemming from the conflict in the Middle East. These pressures have been reflected in higher international prices for energy, food, and raw materials. Policymakers now expect inflation to exceed the upper bound of the central bank’s target range of 5% ±1.5 percentage points in the coming months. Inflation in Moldova accelerated to 5.8% in March. Meanwhile, policymakers also raised the interest rate on overnight loans to 8.5%, increased the repo rate to 6.75%, and lifted the overnight deposit rate to 4.5%.
2026-05-07
Moldova Maintains Policy Rate at 5%
The National Bank of Moldova held its benchmark interest rate steady at 5% at its March 2026 meeting, following a 100 bps cut in December. The decision comes amid international turbulence sparked by the Middle East war, with surging global energy prices posing risks to economic growth and inflation worldwide. Moldova’s annual inflation rose to 5.1% in February 2026, from a one-and-a-half-year low of 4.9% in January. The NBM emphasized that previous monetary measures, along with their delayed effects, continue to support its goal of keeping inflation within ±1.5 percentage points of the 5% target. Meanwhile, preliminary estimates showed that the economy grew 3.6% year-on-year in Q4 2025, after a downwardly revised 5.1% expansion in Q3. The central bank signaled vigilance in monitoring domestic and global developments, including the escalating Middle East conflict, and emphasized that it is ready to tighten policy if high energy, food, or raw material prices threaten inflation.
2026-03-19