National Bank of Macedonia Maintains Cautious Approach to Monetary Policy

Strategic Insights -

The National Bank of Macedonia's Executive Board meeting on July 29, 2025, reviewed the latest economic data and financial market developments, deciding to keep interest rates unchanged. The interest rate on treasury bills remains at 5.35%, and interest rates on overnight and 7-day deposits stay at 3.95% and 4%, respectively. The supply of treasury bills at the regular auction will also be unchanged, amounting to 10 billion denars.

The National Bank aims to maintain price stability in the medium term and preserve the stability of the denar exchange rate against the euro. Inflation movements remain a key concern, with the annual inflation rate accelerating to 4.5% in June 2025 due to higher food prices and basic components. The Board is closely monitoring the situation, taking into account the need for further caution due to uncertainty about the future dynamics of primary product prices on stock exchanges.

Key Takeaways:

  • The National Bank of Macedonia's Executive Board maintained interest rates unchanged at 5.35% for treasury bills, 3.95% for overnight deposits, and 4% for 7-day deposits.
  • The supply of treasury bills at the regular auction was also unchanged, amounting to 10 billion denars.
  • The Bank aims to maintain price stability in the medium term and preserve the stability of the denar exchange rate against the euro.
  • Inflation movements remain a key concern, with the annual inflation rate accelerating to 4.5% in June 2025.
  • The Board is closely monitoring the situation, taking into account the need for further caution due to uncertainty about the future dynamics of primary product prices on stock exchanges.
  • Economic activity continued to grow in the first quarter of 2025, with GDP increasing by 3.0%.
  • The balance of payments in the first quarter of 2025 is close to expectations.
  • The stability of the foreign exchange market remains a key concern, with the level of foreign exchange reserves amounting to 4,697.6 million euros at the end of June.

Statistics:

  • Interest rate on treasury bills: 5.35%
  • Interest rate on overnight deposits: 3.95%
  • Interest rate on 7-day deposits: 4%
  • Supply of treasury bills at the regular auction: 10 billion denars
  • Annual inflation rate: 4.5% in June 2025
  • GDP growth in the first quarter of 2025: 3.0%
  • Balance of payments in the first quarter of 2025: close to expectations
  • Foreign exchange reserves at the end of June: 4,697.6 million euros

Sources:

  • "National Bank of Macedonia"
  • "Monetary Policy Stance of the National Bank"
  • "Executive Board Meeting Minutes"