The NBM lowered the base rate applied to main short-term monetary policy operations by 0.25 percentage points, from 6.5% to 6.25% per annum
The Executive Board of the National Bank of Moldova (NBM) adopted this decision at its meeting on August 7. The NBM also reduced interest rates on overnight loans by 0.25 percentage points, from 8.5% to 8.25% per annum, on overnight deposits by 0.25 percentage points, from 4.5% to 4.25%, and on repo operations by 0.25 percentage points, from 6.75% to 6.5% per annum. At the same time, the National Bank of Moldova kept the reserve requirement ratio applicable to deposits in Moldovan lei and non-convertible currencies at 22% of the calculation base, while the reserve requirement ratio applicable to funds attracted in freely convertible currency remained unchanged at 31% of the calculation base. The Executive Board of the NBM also approved today the Inflation Report for August, which is to be published on August 14. As noted in the National Bank's statement, the decision to lower the base rate applied to main short-term monetary policy operations to 6.25% per annum marks the end of the restrictive monetary policy period and indicates that the central bank is focused on stimulating the economy. The aim is to stimulate consumption and investment, as well as to maintain inflation at a level optimal for the country's economic growth – 5.0% ±1.5 percentage points. The NBM's decision is based on forecasts showing a downward trend in inflation. The effect of this decision will be felt gradually, through lower interest rates on loans and deposits. The NBM believes that the tight policy previously applied was correct and helped to contain annual inflation, which fell to 8.2% in June 2025 from 8.8% in March. According to the NBM's estimates, annual inflation will continue to decline until the end of this year and in the first half of next year. The NBM notes that domestic economic activity and inflation are subject to supply shocks, including increases in regulated tariffs since the end of 2024 and the beginning of this year, as well as a decline in agricultural production due to unfavorable weather conditions. Although the global economy faces uncertainty—tensions in the Middle East and energy price volatility—Moldova's domestic data show signs of recovery. Industrial production and trade have grown despite a decline in exports. The NBM stated that it would continue to monitor the economic situation, both domestic and external, to ensure price stability. Further monetary policy decisions will be taken in line with inflation developments. The next meeting of the NBM's Executive Board on monetary policy is scheduled for September 18. It should be noted that the NBM last changed the base rate applied to main short-term monetary policy operations on February 5, 2025, increasing it by 0.9 percentage points, from 5.6% to 6.5% per annum. This was the second increase in the base rate applied to main short-term monetary policy operations this year, after the National Bank raised it by 2 percentage points at once on January 10, from 3.6% to 5.6% per annum. Overall, in 2024, the base rate applied to main short-term monetary policy operations changed three times. Specifically, it was lowered from 4.75% to 4.25% on February 6, to 3.75% on March 21, and to 3.6% per annum on May 7, 2024. // 07.08.2025 – InfoMarket.
