Moldova’s central bank lowered its benchmark interest rate by 400 bps to 6%, continuing a loosening policy since the rate peaked at 21.5% in August 2022. This action is in response to concerns over economic growth and decelerating inflation. The bank stated that it would continue to enact stimulus measures to facilitate conditions that promote lending and consumer spending while steering inflation towards a target range of 3.5%-6.5%. Inflation was last recorded at 16.3% YoY in May, down from a peak of 34.6% in October 2022.