- Decision
- Maintain
- Rate change
- 0 bps
- Policy rate after decision
- 4%
The National Bank of the Republic of North Macedonia kept the policy rate at 4% in its May 2026 monetary policy decision, citing elevated global unpredictability and the need for more information on the domestic effects, while warning that risks had increased toward further tightening; after also holding the CB bill rate at 4% in February 2026, the National Bank said the current stance was supported by changes in the reserve requirement and macro-prudential measures aimed at maintaining exchange rate stability and inflation and loosening credit standards. Average annual inflation slowed to 3.7% in the first quarter of 2026 from 4.2% in the previous quarter, with core inflation easing to 3.3%, but inflation outturns were slightly above projections and, together with higher import prices and increased energy and food commodity forecasts, pointed to pronounced upside risks, while the economy grew 3.8% year on year in the fourth quarter of 2025 and high-frequency data for the first quarter of 2026 indicated further moderate growth; in the monetary sector, March data showed further strengthening in bank deposits and solid credit growth above first-quarter expectations. Foreign reserves stood at EUR 5,249.4 million at end-March, above end-2025 levels due to government borrowing on the international market, and the National Bank said it had been active in the foreign exchange market since the start of the year to meet increased demand for foreign currency liquidity, although reserves remained in the safe zone. Globally, the protracted Middle East conflict was described as disrupting oil supply and keeping oil prices high, adding to uncertainty and volatility. The National Bank said it would closely monitor external and domestic developments and would raise the interest rate if inflation remained high, affected inflation expectations and foreign exchange market demand continued to grow.