The National Bank of the Republic of North Macedonia held its key interest rate at 4.25%, citing the need to confirm the sustainability of easing inflation and foreign-exchange stability amid persistent external uncertainty and domestic demand pressures. The decision followed a 25-basis-point increase from 4% in June. Reserve-requirement and macroprudential measures continue to support the policy stance, aimed at maintaining the denar’s stability against the euro and stabilising inflation expectations. Annual inflation stood at 2.7% in September, with energy and food inflation accelerating while core inflation slowed. The central bank projects inflation of 3.6% and economic growth of 3.8% in 2026, supported by infrastructure investment, while credit continues to provide stronger support to activity. Foreign-exchange reserves remained within the safe zone at end-September, and the central bank purchased foreign currency for most of the third quarter. Escalating tensions in the Middle East and the continuing war in Ukraine have raised energy prices and disrupted supply chains, creating risks for domestic prices and the foreign-exchange market. The central bank reiterated its commitment to denar-euro exchange-rate stability and its readiness to use all available instruments to preserve macroeconomic and financial stability.
National Bank of the Republic of North Macedonia Holds Key Interest Rate at 4.25%
The National Bank of the Republic of North Macedonia held its key interest rate at 4.25%, seeking confirmation of sustained disinflation and foreign-exchange stability amid external uncertainty and domestic demand pressures. Annual inflation stood at 2.7% in September, with the central bank projecting 3.6% for 2026.