NBM shifts policy to boost economic growth
Inflation is expected to continue its decline in the coming months, and financing costs will fall after the National Bank of Moldova (NBM) decided to lower its monetary policy rate.
The assurance comes from NBM Governor Anca Dragu, who provided more details during the "IN CONTEXT" show on the national television station Moldova 1.
According to the governor, the measure adopted by the NBM on August 7—reducing the key rate from 6.5% to 6.25%—is supported by current disinflationary trends and optimistic forecasts for the end of the year.
"We expect inflation to continue this downward trend. While it has been a gentle decline in recent months, we anticipate this trend will accelerate, so we should see a reduction to below 6% by the end of this year and early next year. That would bring us within the inflation target range," emphasized NBM Governor Anca Dragu.
The head of the central bank added that, with this decision, the NBM is sending a positive signal to the economy and investors.
"The economic impact is straightforward: we expect to see a reduction in interest rates on loans. This will likely be visible very quickly for new loans and with a delay of a few months for existing loans. We also anticipate a decrease in interest rates for deposits. In other words, investments will become more accessible," the central bank governor added.
Anca Dragu also specified on Moldova 1 that prices for food products and regulated items, such as electricity, are currently falling.
"We already have some positive news regarding price reductions for final consumers—a decrease in final electricity tariffs, effective this very week, following the decision by ANRE (National Agency for Energy Regulation). So, we're seeing components of prices going down, and the dynamic of price growth is tempering," Anca Dragu explained.
The National Bank forecasts an average inflation rate of 7.7% for this year and a drop to 3.9% for 2026. The new estimates will be presented in detail in the inflation report, which will be published next week.
As a reminder, today, August 7, the National Bank of Moldova (NBM) decided to lower the key rate from 6.5% to 6.25% annually. According to the institution, the decision marks the end of a period of restrictive monetary policy and the beginning of a phase in which the NBM aims to stimulate consumption and investments to support economic recovery.
Economist Marin Gospodarenco believes the central bank's decision is a signal of transition: from fighting inflation to reviving economic activity. However, the expert warned that inflation remains influenced by both external and internal risks.
Translation by Iurie Tataru
