Moldova raises benchmark rate to 5.66% amid inflation fears
Moldovan homeowners face higher monthly mortgage repayments starting July 1, 2026. The increase comes after the National Bank of Moldova (NBM) raised the benchmark retail interest rate used to calculate borrowing costs.
The benchmark index will tick up from 5.57% to 5.66%. This 9-basis-point increase automatically triggers a recalculation of variable-rate loans linked to this indicator.
The shift directly impacts beneficiaries of the state-backed "First Home Plus" housing scheme. It also targets all retail clients with floating-rate loans denominated in Moldovan lei (MDL).
New interest rate formula
Starting July 1, commercial banks will calculate interest rates using the new formula: 5.66% plus the fixed margin specified in each credit contract.
The NBM calculates this benchmark index semi-annually. It reflects the weighted average interest rate on new domestic currency deposits maturing between six and 12 months across the entire banking sector.
While the 0.09 percentage point increase appears minor, it will drive up monthly installments for thousands of floating-rate mortgage holders.
Monetary policy tightening
This adjustment follows the central bank's broader decision to increase its main short-term policy rate to 7.0%, up from 6.5%.
The NBM Executive Board adopted the decision unanimously on June 18, 2026. Policymakers warned that inflationary pressures remain elevated due to external geopolitical developments and rising domestic demand.
As part of the tightening cycle, the central bank raised the overnight credit rate to 9.00% and repo operations to 7.25%. The overnight deposit rate increased to 5.00% per annum.
Meanwhile, required reserve ratios remain unchanged. Commercial banks must hold 18% for funds attracted in Moldovan lei and non-convertible currencies, and 26% for freely convertible currencies.
Translation by Iurie Tataru
