Macedonia Interest Rate

The National Bank of the Republic of North Macedonia kept its benchmark interest rate unchanged at 5.35% for a fourth straight meeting in July 2025, maintaining a cautious monetary stance amid high inflation and persistent external uncertainties. Annual inflation rose to 4.5% in June, slightly above expectations, driven mainly by higher food and core goods prices. Geopolitical tensions, trade barriers, and climate risks continue to cloud the outlook for commodity prices, adding to inflation uncertainty. Economic growth remained solid, with GDP expanding 3.0% in Q1 and signs of acceleration in Q2, supported by gains in construction, industry, and services. The foreign exchange market stayed stable, underpinned by €4.7 billion in reserves—adequate to sustain the denar’s peg to the euro. The central bank’s policy mix, including interest rates, reserve requirements, and macroprudential tools, remains focused on preserving medium-term price stability and exchange rate alignment.