North Macedonia Leaves Key Rate Unchanged

The National Bank of North Macedonia kept its interest rate unchanged at 4.25% at its September 2026 meeting, citing stability in the denar exchange rate and resilient economic growth. Policymakers stated that it was still too early to fully assess the inflation trend, particularly given the uncertainty surrounding the conflict in the Middle East and the conflict between Ukraine and Russia. Headline inflation rebounded in August, accelerating to 2.6%, amid persistent inflationary pressures from higher global energy prices. Meanwhile, the domestic economy remained resilient, with economic growth accelerating to 4.3% in the second quarter of 2026 despite the broader adverse environment. Looking ahead, the NBNM stated that it would continue to aim for stability of the denar against the euro to ensure price stability in the medium term, while closely monitoring domestic and international economic and financial developments.

The National Bank of North Macedonia left its interest rate unchanged at 4.25% at its July 2026 meeting, citing uncertainty surrounding foreign prices and geopolitical tensions. Although headline inflation slowed in June to 3.4% from 4.8%, driven by lower food prices, policymakers stated more time was needing to assess price stability considering that inflation remains elevated, as foreign prices are still high and unstable due to geopolitical tensions and possible spill-over effects. Economic activity continues to show resilience, although growth slowed to 3.1% in the first quarter of 2026 from 3.8% in the prior quarter. Looking ahead, the NBNM stated it will continue to aim for stability of the denar against the euro, in order to ensur price stability in the medium term, and will closely monitor domestic and international economic and financial development.

The National Bank of North Macedonia raised its key interest rate by 25 bps to 4.25% at its June 2026 meeting, the first hike since September 2023, citing lingering risks from geopolitical tensions. Policymakers said the current stance together with previous adjustments to other instruments including reserve requirements and macroprudential measures will help maintain exchange rate stability and anchor inflation expectations They noted that the annual inflation rate slowed to 4.8% in May from 5.7% in April, but remains elevated, indicating persistent inflationary pressures and a slower return to historical averages. Meanwhile, the central bank said the domestic economy remains resilient despite an uncertain external environment. Real GDP increased by 3.1% in Q1 2026, close to early projections, while available high-frequency indicators for Q2 remain scarce, though April data point to stronger industrial output and softer trade turnover.