National Bank of Moldova raises refinancing rate to 11% pa
CHISINAU. Nov 5 (Interfax) - The National Bank of Moldova (NBM) has set the refinancing rate at 11% per annum for the first time since 2023, the regulator said.
The NBM has raised the rate incrementally throughout the year from 5% pa in May to 9% pa as of mid-September, and the lowest level was 3.6% pa in May 2024.
In accordance with the NBM's decision, effective November 5, the rate for overnight loans has been increased from 11% to 13% pa, the rate for overnight deposits from 7% to 9% pa, and the rate for repo transactions from 9.25% to 11.25% pa.
The reserve requirement ratio remains unchanged at 18% for deposits in the national currency and 26% for deposits in foreign convertible currencies.
"The decision to raise the base interest rate is driven by intensifying inflationary pressures and growing risks to price stability in the medium term. The acceleration of annual inflation, the persistence of robust domestic demand, and an upward revision of the inflation forecast all point to an increased risk that inflation will remain above previously anticipated levels," the regulator explained.
According to the NBM, annual inflation rose to 8.6% in September 2026, up 1.64 percentage points from the previous month, thus surpassing the upper limit of the permissible deviation range of ±1.5 p.p., around the 5% target.
The NBM has revised its inflation forecast upward. The updated outlook projects average annual inflation at 7.3% for 2026 and 6.9% for 2027, increases of 0.1 p.p. and 0.7 p.p., respectively, compared to the previous forecast Amid a sharp surge in the prices of imported energy. The NBM expects inflation to begin declining from the first quarter of 2027.
As it did earlier this year, the regulator highlighted the persistence of external inflationary risks, driven by ongoing geopolitical and trade tensions, which are fueling a rise in global energy and food prices. Additionally, the NBM identified new risks, including fluctuations in the US dollar exchange rate and extreme weather events.
The next meeting of the NBM executive board on monetary policy is on December 17, 2026.
The regulator raised the interest rate to 9% pa at the previous meeting on September 17.
