The National Bank of the Republic of North Macedonia held its policy rate at 4.25% on July 28, saying inflation continues to slow but more time is needed to confirm the sustainability of that trend amid high external uncertainty and domestic demand-side risks; the rate had been kept at 4.0% in February and May before being raised by 25 bp in June. The central bank said the unchanged stance, together with earlier reserve requirement and macroprudential measures, should help preserve denar-euro exchange-rate stability, gradually return inflation to its historical average, strengthen inflation expectations and influence credit conditions. June inflation slowed to 3.4%, below the April projection, while real GDP growth was 3.1% in the first quarter of 2026 and high-frequency indicators for the second quarter point to possible acceleration, with credit support to demand still stronger than projected alongside faster deposit growth. On the external side, the foreign exchange market has been stable since early May, with only very small interventions on both the sale and purchase sides, while foreign reserves stood at EUR 4,936.4 million at end-June and remained in the safe zone, even as corporate demand for foreign currency stayed elevated partly because of higher energy prices. The central bank cited renewed escalation in the Middle East and the war between Russia and Ukraine as drivers of fresh upward pressure on energy and other primary commodity prices and supply-chain disruptio
National Bank of the Republic of North Macedonia2026-07-28
National Bank of the Republic of North Macedonia Holds Policy Rate at 4.25%
The National Bank of the Republic of North Macedonia kept its policy rate at 4.25% on 28 July, saying inflation has continued to slow, with June inflation at 3.4%, but that more time is needed to confirm the trend amid high external uncertainty and domestic demand-side risks. It said the current stance, alongside earlier reserve requirement and macroprudential measures, should support denar-euro exchange-rate stability and a gradual return of inflation to its historical average, while it remains ready to use all available instruments to preserve macroeconomic and financial stability.