Moldova Interest Rate

The National Bank of Moldova kept its base interest rate unchanged at 6.5% during its April meeting, maintaining borrowing costs at their highest since June 2023, to anchor inflation expectations and bring inflation back within the ±1.5 percentage point range of the 5.0% target over the medium term. The latest data showed that inflation rose to 8.8% in March from 8.6% in February, well above the central bank's target, driven by higher regulated tariffs for gas, heat, and electricity, as well as food price increases. Supply-side shocks, including adverse weather and reduced agricultural output, continued to weigh on the economy. Still, the central bank noted that the economy is undergoing disinflationary pressured despite the high price growth, driven by weak domestic demand and the lagged effects of previous monetary tightening. Policymakers also pointed to potential disinflationary effects from subdued global demand amid US trade conditionalities.