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

The base rate for short-term main monetary policy operations has been reduced from six to five per cent. The decision today was taken by the Executive Board of the National Bank of Moldova (BNM).

Under the same decision, the rate for overnight credits was set at seven per cent annually, compared to eight per cent previously; for repo operations – 5.25 per cent, compared to 6.25 per cent; and for overnight deposits – three per cent  annually, compared to four per cent previously.

The National Bank announced that, with this decision, it continued the measures to relax monetary policy, thus aiming to bring and maintain inflation in the medium term within the variation range of ±1.5 percentage points from the target of five per cent, considered the favorable level for the growth and economic development of Moldova.

“The decision of the National Bank of Moldova aims to stimulate aggregate demand, currently disinflationary, including through encouraging consumption and investments, balancing the national economy and the current account, as well as anchoring inflationary expectations. The reduction of the base rate will act through the interest rate channel, taking into account the time lags associated with the transmission mechanism, and will influence the decrease in interest rates on the monetary, deposit and credit markets,” BNM said.

According to the cited source, recent macroeconomic data largely confirm the main assumptions regarding economic activity stated in the previous forecast, which indicates the return of inflation within the target variation range in December this year and its maintenance in the lower part of the target range, starting from the first quarter of 2026 until the end of the forecast period.

The next meeting of the BNM Executive Board on the promotion of monetary policy will take place on February 5, 2026.