North Macedonia Holds Rates Amid Heightened Uncertainty

2026-05-05 12:17 By Isabela Couto 1 min. read

The National Bank of North Macedonia kept its key interest rate unchanged at 4% at its May 2026 meeting, citing elevated global uncertainty and the need for more data to assess the impact on the domestic economy.

Ongoing tensions in the Middle East have disrupted oil supply and kept energy prices high.

The central bank warned it may raise rates if inflation remains elevated, affects expectations, or if FX market demand increases.

Inflation slowed to an average of 3.7% in Q1 2026 from 4.2% in the previous quarter, mainly due to easing core pressures, which fell to 3.3%.

However, inflation remains slightly above projections, and higher import prices point to upside risks.

Despite expectations that the conflict may be temporary, projections for commodity prices, especially energy and food, have been revised significantly higher, reinforcing the need for a cautious policy stance.



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North Macedonia Holds Rates Amid Heightened Uncertainty
The National Bank of North Macedonia kept its key interest rate unchanged at 4% at its May 2026 meeting, citing elevated global uncertainty and the need for more data to assess the impact on the domestic economy. Ongoing tensions in the Middle East have disrupted oil supply and kept energy prices high. The central bank warned it may raise rates if inflation remains elevated, affects expectations, or if FX market demand increases. Inflation slowed to an average of 3.7% in Q1 2026 from 4.2% in the previous quarter, mainly due to easing core pressures, which fell to 3.3%. However, inflation remains slightly above projections, and higher import prices point to upside risks. Despite expectations that the conflict may be temporary, projections for commodity prices, especially energy and food, have been revised significantly higher, reinforcing the need for a cautious policy stance.
2026-05-05
North Macedonia Keeps Policy Rate at 4%
The National Bank of North Macedonia left the main interest rate unchanged at 4% at its March 2026 meeting, maintaining a cautious policy stance, citing challenges posed by the Middle East conflict. Policymakers noted that inflation continued to slow as expected, reaching 2.9% in February, although rising global energy prices could exert upward pressure. The domestic economy remained resilient, expanding 3.5% in 2025, with Q4 growth at 3.8%, supported by strong investment and export performance. However, external risks have increased sharply, due to the recent outbreak of the Middle East conflict, which has disrupted global energy supplies and added uncertainty to global growth prospects. The central bank signaled readiness to use all tools to maintain the denar's stability against the euro and ensure price stability.
2026-03-24
North Macedonia Maintains Key Interest Rate at 4%
The National Bank of North Macedonia decided to keep the main interest rate unchanged at 4% to maintain a cautious approach and control inflation. Inflation averaged 4.1% in 2025, slightly above the historical average, so stabilizing prices remains a priority. Global uncertainty, rising commodity prices, and domestic demand still pose risks to future inflation. Economic growth is steady, with GDP growing 3.8% in late 2025 and expected to improve slightly, supported by infrastructure projects and strong bank lending. Foreign exchange reserves reached €5.6 billion, considered sufficient to maintain currency stability. Bank deposits and loans are growing, showing a healthy banking sector. However, external risks such as global trade tensions and geopolitical issues remain.
2026-02-10