Moldova’s central bank has lowered its key rate by another 50 bps to 4.25%. That marks the seventh aggressive rate cut since August 2023, when the rate was 21.5%. Annual inflation slowed to 4.2% in December from 5.5% the previous month, slightly below expectations due to an unexpected drop in electricity tariffs in November and the statistical accounting of compensation for high energy prices during the cold months. Inflation is aimed to be maintained between 3.5-6.5%.