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 reserve
National Bank of the Republic of North Macedonia2026-05-05
National Bank of the Republic of North Macedonia Holds Policy Rate at 4%
The National Bank of the Republic of North Macedonia kept its policy rate at 4% in May 2026, citing elevated global uncertainty and the need for more information on domestic effects, while signalling increased risks toward further tightening. It said inflation slowed to 3.7% in the first quarter of 2026 but remained slightly above projections, foreign reserves were EUR 5,249.4 million at end-March and still in the safe zone, and rates could rise if inflation stays high, inflation expectations worsen and foreign exchange market demand continues to increase.