National Bank of Moldova raises base rate for main monetary policy operations

The National Bank of Moldova (BNM) today ruled to increase the base rate applied to main short-term monetary policy operations to 6.5 percent, compared to 5 percent previously.

Under the same decision, the interest rate on overnight loans was set at 8.50 percent annually, up from 7.0 percent previously, on overnight deposits at 4.50 percent annually, compared to 3.0 percent, and on repo operations at 6.75 percent, up from 5.25 percent.

At the same time, the required reserve ratios were kept at their current levels – 18.0 percent for Moldovan leu-denominated funds and 26.0 percent for freely convertible foreign currency.

The BNM noted that this measure had been adopted, in order to mitigate inflationary pressures triggered by the intensification of the conflict in the Middle East, which has led to higher global prices for energy, food products and raw materials. The latest data shows that the pace of prices’ increases reached 5.81 percent in March 2026, exceeding the February projections, because of higher oil and natural gas prices, caused by the blockage of the Strait of Hormuz.

Under these conditions, according to the BNM, the current short- and medium-term inflation forecast reinforces the certainty that the annual inflation rate in the coming months of 2026 will exceed the upper limit of the variation band of ±1.5 percentage points around the 5.0 percent annual inflation target.

On financial markets, the US dollar strengthened in March, while the euro fell significantly compared to last year, according to BNM data. The institution notes that these movements exert additional pressure on prices and are changing the way major global banks plan their actions, with other countries also expected to raise interest rates during this year.

"The economy of Moldova showed good signs at the beginning of the year, with visible progress marked by increases in industry (+2.8 percent), agriculture (+8.6 percent) and retail trade (+16.3 percent). At the same time, international political risks compel the National Bank to act preventively. The main causes for concern come from abroad: the war in Ukraine, instability in the Middle East and a possible slowdown of the European economy could lead to new prices’ increases," the BNM noted.

The National Bank reiterates that it will carefully monitor macroeconomic developments and is prepared to use all available tools to ensure prices' stability.

The Inflation Report will be published on 14 May, 2026. The next monetary policy meeting is scheduled for 18 June, 2026.