Moldova Interest Rate

The National Bank of Moldova kept its benchmark interest rate unchanged at 6.5% during its June meeting, aiming to anchor inflation expectations and return inflation to its 5% target. Policymakers signaled that future rate cuts remain on the table, citing a continued disinflationary trend expected through the end of the year. Annual inflation edged up slightly to 7.9% in May 2025, 0.1 percentage points higher than in April, remaining above the upper bound of the central bank’s ±1.5 percentage point target range. Meanwhile, Moldova’s economy contracted by 1.2% year-on-year in the first quarter of 2025, weighed down by negative net external demand. Policymakers also warned that significant uncertainties remain. Key concerns include this year’s and next year’s agricultural output, domestic consumption, investment levels, remittance flows affected by regional tensions, population migration, and weaker regional demand due to mutual sanctions among neighboring countries.