The National Bank of Moldova’s executive board raised the policy rate by 100 basis points on July 30, to 3.65%.

The decision marked the first rate change since November 2020, when the central bank lowered rates by 10bp. The move comes amid inflation that has risen from near zero at the year’s beginning, but which remains well below target.

The NBM’s press release indicated that higher global commodity prices, and growing domestic demand and wages, risked inflation rising above the 5% target