National Bank of Moldova again sharply raises refinancing rate, now to 9%
CHISINAU. Sept 17 (Interfax) - The National Bank of Moldova (NBM) has raised the refinancing rate to 9% from the level of 7.5% which was in effect from August 6, the NBM said on Thursday.
The rate on overnight credits was raised from 9.5% to 11% per annum, the rate on overnight deposits increased from 5.5% to 7% per annum, and the rate on repo operations rose from 7.75% to 9.25% per annum.
The reserve requirement ratio was kept at the current level - 18% for deposits in the national currency and 26% for deposits in freely convertible currency.
The further tightening of monetary policy is connected with increased inflationary pressure amid rising international prices for energy carriers, food and raw materials, as well as in connection with the growth of incomes of the country's population, the NBM said.
"In making the decision to raise the base rate, the National Bank of Moldova seeks to reduce inflationary pressure, mitigate the secondary effects of supply shocks, stimulate savings to the detriment of consumption and anchor inflation expectations, in order to return the annual inflation rate to the fluctuation range of plus or minus 1.5 percentage points from the medium-term inflation target of 5%," the NBM said.
The regulator noted that annual inflation grew to 6.96% in August from 6.34% in July. At the same time, the inflation level in August was lower than expected due to the delay in raising natural gas tariffs.
The NBM updated its inflation forecast and now expects a reduction in inflation risks in Q3 2026 compared to the August forecast, but a deterioration in prospects in Q4 and H1 2027.
The next scheduled meeting of the NBM executive committee on monetary policy will be held on November 5.
At the previous meeting on August 6, the NBM raised the refinancing rate to 7.5% from 7%.
As reported, due to accelerating inflation, the NBM sharply raised the refinancing rate on May 7 from 5% to 6.5%, then on June 18 the rate was raised to 7% per annum.
