FX.co ★ Moldova Leaves Monetary Policy Unchanged

The National Bank of Moldova decided to maintain its key interest rate at 6.5% during its meeting in March, deeming the current monetary policy appropriate to guide inflation back to its target of 5.0%, with an allowable fluctuation of ±1.5 percentage points over the medium term. The policymakers underscored the ongoing trend of decreasing inflation and acknowledged the effects of recent stringent monetary policies that continue to permeate the economy. In February 2025, the annual inflation rate in the country decreased to 8.6% from 9.1% in January, aligning with projections from the latest Inflation Report. This decline was primarily driven by a less significant than anticipated impact of compensations on electricity tariffs. Nevertheless, the policymakers cautioned about prevailing uncertainties, particularly concerning agricultural output, adjustments in utility tariffs, the necessity for sufficient fiscal stimulus to stimulate economic activity, the reception of external financial aid, and regional tensions, including the ramifications of mutual sanctions and moderately weak regional demand.