National Bank of Moldova lowers refinancing rate to 5%
CHISINAU. Dec 11 (Interfax) - The National Bank of Moldova (NBM) took the decision on Thursday to lower the base rate or refinancing rate from 6% to 5% per annum.
"With this decision, the National Bank continues with its measures to soften monetary policy and, as such, is striving to recover and maintain inflation in the medium term in a range within 1.5 percentage points below or above the target indicator of 5%, which is considered favorable for the growth and economic development of the republic," the NBM said in a statement.
The NBM also lowered the overnight lending rate from 8% to 7% per annum, the REPO rate from 6.25% to 5.25% per annum and the overnight deposit rate from 4% to 3% per annum.
"The National Bank's decision is aimed at boosting aggregate demand, which is currently disinflationary, partly through encouraging consumption and investment, balancing out the national economy and the current account, as well as consolidating inflation expectations. The base rate cut will have its effect through interest rates, taking into account the time delays associated with the transmission mechanism, and will act to decrease interest rates on the money, deposit and credit markets," the NBM said.
The NBM estimates that inflation will return to the target range in December of this year and "will remain in the lower end of the target range from the first quarter of 2026 until the end of the forecast period".
The bank said that the economy of the eurozone had grown moderately despite geopolitical tensions and uncertainty in terms of trade. It said that the price of natural gas could continue to fall in Europe in 2026 due to a stabilization of supply as well as a slight decrease in global food prices.
The NBM will hold its next monetary policy meeting on February 5, 2026.
As reported, following the halt of Russian gas supplies to Transdniestria, from which right-bank Moldova imported low-cost electricity, Chisinau was forced to rapidly increase imports of more expensive electricity from Romania, leading to a sharp rise in domestic tariffs. At the beginning of the year, the NBM significantly raised the base rate from 3.6% to 5.6% in an effort to minimize the inflationary impact of rising energy prices, after inflation increased from 4.2% to 7% in 2024.
The NBM decreased the rate from 4.75% to 3.6% over several stages in 2024.
