The National Bank of Moldova (BNM) has raised the basic rate for principal, short-term monetary policy operations to 5.6% annually, up from 3.6%. The executive committee of the National Bank of Moldova made this decision unanimously during a meeting.
Additionally, the BNM set the annual interest rates as follows:
Overnight loans: 7.6%, up from 5.6%.
Overnight deposits: 3.6%, up from 1.6%.
Repo operations: 5.85%, up from 3.85%.
The committee convened this unplanned meeting to adjust the monetary policy and address inflationary pressures caused by recent tariff hikes.
“The decision is based on an analysis of recent macroeconomic data related to both external and internal factors, particularly the acceleration of inflation due to increased domestic tariffs for network gas, thermal energy, and electricity. These adjustments, implemented in December 2024 and January 2025, have driven significant price increases for energy resources, adding inflationary pressure through higher production costs, consumer prices, and inflation expectations among households and businesses,” the BNM stated.
FOR THE MOST IMPORTANT NEWS, FOLLOW US ON TWITTER!
The institution emphasized that the updated short- and medium-term inflation forecasts suggest the annual inflation rate will exceed the upper limit of the ±1.5 percentage point variation corridor from the 5% annual target for several quarters in 2025.
“The increase in the basic rate aims to mitigate the secondary effects of regulated tariff adjustments on inflation and anchor inflation expectations. This measure seeks to bring the annual consumer price inflation back within the target corridor within a reasonable timeframe,” the BNM added.