FX.co ★ Moldova Cuts Benchmark Rate to 6%

The National Bank of Moldova reduced its key interest rate by 25 basis points to 6.0% as of September 18, reflecting its continued strategy of monetary easing. This decision aims to stabilize inflation expectations and realign annual inflation towards the target of 5.0% ±1.5%. In August, inflation decreased to 7.3% from 7.9% in July. Economic indicators suggest initial signs of recovery in the second quarter of 2025, highlighted by a 3.2% increase in industrial production, alongside retail and wholesale trade growth of 10.1% and 6.9%, respectively. Despite these positive signals, overall growth remains in the negative territory due to a 7.7% decline in exports, contrasted with a 23.1% surge in imports. The external landscape continues to present uncertainties, marked by ongoing trade and geopolitical challenges, coupled with unstable commodity and food markets. The National Bank of Moldova is focused on bolstering aggregate demand, consumption, and investment to achieve economic stabilization and balance the current account. Future policy decisions will be guided by the changes in domestic and international macroeconomic environments.