The National Bank of North Macedonia raised its key interest rate by 25 basis points to 4.25% at its June 2026 meeting, marking the first increase since September 2023. The decision reflects ongoing risks stemming from geopolitical tensions. Policymakers emphasized that the current policy stance, together with earlier adjustments to other instruments—such as reserve requirements and macroprudential measures—will support exchange rate stability and help anchor inflation expectations.
They highlighted that annual inflation slowed to 4.8% in May from 5.7% in April but remains elevated, pointing to persistent price pressures and a slower return to historical averages. At the same time, the central bank noted that the domestic economy has remained resilient despite a challenging external environment. Real GDP grew by 3.1% in the first quarter of 2026, broadly in line with initial projections. For the second quarter, high-frequency indicators are still limited, but April data suggest stronger industrial production alongside weaker trade turnover.
