Moldova Interest Rate

Moldova's central bank raised its benchmark interest rate by 200 basis points to 5.6% during an unscheduled meeting on January 10, 2025, the highest level since October 2023, to adjust its monetary policy in light of recent tariff hikes. The decision follows an evaluation of rising tariffs on gas, thermal energy, and electricity, which are expected to push up production costs and inflation expectations. As a result, the central bank revised its inflation forecast, predicting the annual inflation rate will remain above the upper limit of the ±1.5 percentage points variation range from the 5.0% target for several quarters in 2025. The rate hike aims to mitigate the inflationary effects of these tariff increases and anchoring expectations with the aim of bringing the annual consumer price rate back within the variation corridor from the inflation target within a reasonable time frame.