By Iulian Ernst in Bucharest
The National Bank of Moldova (BNM) decided on November 6 to keep its monetary policy rate unchanged at 6%, while reducing reserve requirement ratios for commercial banks to support credit growth.
The decision follows a series of rate hikes earlier this year, when the BNM raised the base rate to 6.5% between February and July (from 3.6% previously) in response to a price shock triggered by rising electricity costs. The base rate was cut to 6% in August-September as inflation subdued.
Under the new decision, the reserve requirement ratio for deposits in Moldovan lei was lowered from 22% to 20%, while the ratio for deposits in freely conve…
By Iulian Ernst in Bucharest
The National Bank of Moldova (BNM) decided on November 6 to keep its monetary policy rate unchanged at 6%, while reducing reserve requirement ratios for commercial banks to support credit growth.
The decision follows a series of rate hikes earlier this year, when the BNM raised the base rate to 6.5% between February and July (from 3.6% previously) in response to a price shock triggered by rising electricity costs. The base rate was cut to 6% in August-September as inflation subdued.
Under the new decision, the reserve requirement ratio for deposits in Moldovan lei was lowered from 22% to 20%, while the ratio for deposits in freely convertible foreign currencies was reduced from 31% to 29%.
The central bank said the move was aimed at easing liquidity conditions, encouraging lending, and stimulating domestic consumption and investment.
“With this decision, the BNM aims to meet the liquidity needs of the banking system and reduce the cost of lending, while stimulating consumption and investment,” the bank said in its statement. Moldova’s economic growth was negligible last year and it remains problematic in 2025.
“At the same time, this measure will spread over time, contributing to the decrease in interest rates on the monetary, deposit and credit markets.”
Inflationary pressures have eased in recent months, with headline inflation dropping from over 9% year on year in January to 6.9% in September. Core inflation also fell from 6.1% to 5.1% over the same period. The BNM targets a 5% inflation rate with a tolerance band of plus or minus 1.5 percentage points.
The central bank said its decision to maintain the base rate reflected a cautious approach, allowing more time for the effects of recent policy adjustments to filter through the economy. “The prudent adjustment of monetary policy aims to restore and maintain medium-term inflation within 1.5 percentage points of the 5.0% target, which is considered the optimal level for economic growth and development,” the BNM stated.
The next monetary policy meeting of the BNM Executive Committee is scheduled for December 11, 2025.