The National Bank of Moldova lowered the base rate applied to its main short-term monetary policy operations by 1 percentage point, from 6% to 5% per annum
This decision was made by the Executive Committee of the National Bank of Moldova at its meeting on December 11. The NBM also reduced the overnight lending rate by 1 percentage point, from 8% to 7% per annum, the overnight deposit rate by 1 percentage point, from 4% to 3%, and the repo rate by 1 percentage point, from 6.25% to 5.25% per annum. The National Bank of Moldova noted that, by making this decision, it continues its monetary easing measures and, thus, aims to restore and maintain inflation in the medium term within a range of ±1.5 percentage points from the target level of 5%, which is considered favorable for Moldova's growth and economic development. The National Bank's decision is aimed at stimulating aggregate demand, which is currently disinflationary, including by encouraging consumption and investment, rebalancing the national economy and current account, and anchoring inflation expectations. The reduction in the base rate will operate through the interest rate channel, taking into account time lags associated with the transmission mechanism, and will have a downward impact on interest rates in the money, deposit, and credit markets. As noted by the NBM, the latest macroeconomic information largely confirms the key assumptions regarding economic activity set out in the NBM's forecast published in the November 2025 Inflation Review, which indicates that inflation will return to the target range in December of this year and remain at the lower end of the target range from the first quarter of 2026 until the end of the forecast period. The next meeting of the NBM Executive Committee on monetary policy will be held on February 5, 2026, in accordance with the approved calendar. It should be noted that at the previous meeting on November 6, the National Bank kept the base rate applied to the main short-term monetary policy operations at 6% per annum, but reduced the required reserve requirements in lei and freely convertible currency by 2 percentage points. The last time the NBM changed the base rate applied to the main short-term monetary policy operations was on September 18, reducing it by 0.25 percentage points - from 6.25% to 6% per annum. Before that, on August 7, the NBM also reduced it by 0.25 percentage points - from 6.5% to 6.25% per annum. Earlier this year, the NBM twice increased the base rate applied to the main short-term monetary policy operations. On January 10, the NBM increased it by 2 percentage points at once - from 3.6% to 5.6% per annum, and on February 5, it increased it by another 0.9 percentage points - up to 6.5% per annum. In 2024, the base rate applied to key short-term monetary policy operations was changed three times. Specifically, it was reduced 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. // 11.12.2025 — InfoMarket.
