FX.co ★ North Macedonia Maintains Key Interest Rate at 5.35%

In September 2025, the National Bank of North Macedonia maintained its benchmark interest rate at 5.35% for the fifth consecutive session, reflecting a cautious approach in its monetary policy amid consistent domestic economic growth. The headline inflation slightly eased to 4.4% in August from 4.8% in July, primarily influenced by the cost of basic goods and food. However, risks persist due to global uncertainties and volatile commodity prices. The country's GDP experienced a 3.4% growth in the second quarter, marking the quickest rate in three years, catalyzed by robust household consumption and gross investment, although net exports posed a minor negative impact. The foreign exchange market has remained stable, with reserves at €4.75 billion, thanks to ongoing interventions by the central bank. This cautious policy is further bolstered by macroprudential measures, such as adjustments to reserve requirements, stricter credit standards, and an escalation in the countercyclical capital buffer, indicating a balanced approach aimed at ensuring price stability, exchange rate stability, and mitigating systemic risks.