The National Bank of the Republic of North Macedonia reiterated that monetary policy will remain vigilant, with all available instruments ready to be deployed to preserve the stability of the denar’s exchange rate against the euro and maintain price stability. In remarks by Vice Governor Mitreska at the Central and Eastern European Forum 2026, inflation was described as having fallen to single-digit levels but still hovering around 4%. The central bank attributed the decline to weaker external price pressures and prudent monetary policy underpinned by macroprudential measures, while noting inflation remains above its historical average and above the euro area rate, broadly in line with average inflation across Central and Eastern Europe. Mitreska also pointed to common regional drivers such as wage growth and the credit cycle that are prolonging disinflation relative to the euro area; after initiating policy rate normalisation, the process was halted in February 2025 and the monetary approach was further reinforced via the reserve requirement instrument and other macroprudential measures to better shape inflation expectations, which is expected to further reduce domestic inflation.

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