FX.co ★ Moldova Maintains Key Rate at 6.5%

The National Bank of Moldova decided to maintain its base interest rate at 6.5% during its April meeting. This level, the highest since June 2023, aims to stabilize inflation expectations and gradually return inflation to the 5.0% target, allowing for a ±1.5 percentage point margin, in the medium term. Recent statistics reveal that inflation increased to 8.8% in March, up from 8.6% in February, indicating a rate significantly above the central bank's target. This rise was primarily driven by higher regulated tariffs on gas, heat, and electricity, coupled with food price surges. Ongoing supply-side disruptions, including unfavorable weather conditions and a decline in agricultural output, continue to exert pressure on the economy. Nevertheless, the central bank observed signs of disinflationary pressure within the economy, despite the elevated price levels, which are attributable to subdued domestic demand and the delayed impacts of prior monetary tightening measures. Policymakers also highlighted the possible disinflationary influences stemming from muted global demand in the context of U.S. trade restrictions.