FX.co ★ Moldova Central Bank Raises Policy Rate to 7.5%

The National Bank of Moldova raised its benchmark interest rate by 500 basis points to 7.5% in August 2026, bringing borrowing costs to their highest level since May 2023. The decision reflects increased geopolitical risks and uncertainty surrounding global tariffs. Annual inflation slowed to 6.51% in June from 6.8%, remaining close to the upper limit of the central bank’s 5% ± 1.5 percentage point target band. However, average inflation picked up to 6.7% in the second quarter, largely driven by higher fuel and transport costs associated with the conflict in the Middle East. At the same time, economic activity is expected to firm in the second quarter, supported by stronger industrial production and resilient domestic demand. Looking ahead, the central bank revised its inflation outlook upward, projecting inflation to stay above the target range before gradually easing from the first quarter of 2027. This reflects stronger second-round effects from higher fuel prices, anticipated tariff increases in the third quarter, and persistently elevated global food prices.