The National Bank of Moldova raised its benchmark interest rate (central bank’s main policy rate) by 250 basis points to 9% in September 2026, citing economic uncertainty and energy-market volatility. Borrowing costs are now at their highest level since 2023. Headline inflation reached 6.96% in August, near the upper limit of the bank’s 5 ± 1.5% target range, as higher international oil prices increased inflationary pressure. Inflation was nevertheless lower than expected because natural gas tariff adjustments were delayed. Economic activity accelerated to 0.9% in the second quarter, supported by industry, agriculture, financial and insurance activities, and trade. Inflation is expected to rise relatively quickly through the end of 2026, with the outlook dependent on energy and food prices, external financing, the fiscal impulse, and implementation of the new fiscal policy for 2027. Policymakers expect disinflation (a slowing pace of price increases) after 2026.