North Macedonia's central bank holds key rate at 4.25%

The National Bank of North Macedonia decided to keep its main policy rate unchanged at 4.25%. The decision was taken at the regular meeting of its Executive Board on 3 November 2026. The bank said uncertainty in international markets and the risk of rising energy prices require a cautious approach to monetary policy.

The bank said that, despite stability in the foreign exchange market and slowing inflation, time is needed to confirm that these trends are sustainable. Geopolitical tensions, the war in Ukraine and escalation in the Middle East pose risks for energy prices and domestic inflation. Annual inflation was 2.7% in September. Projections point to average inflation of 3.6% in 2026, 3.4% in 2027 and 2.2% in 2028.

The domestic economy continues to grow. GDP rose 3.7% in the first half of 2026, and the bank projects growth of 3.8% for the full year and 4% over the medium term. Road and energy infrastructure investment is expected to be the main driver, supported by domestic consumption and exports. Foreign exchange reserves stood at 5.024 billion euros at the end of September. The bank said it will use existing tools to preserve denar stability, price stability and the financial system.