Macedonia Interest Rate

North Macedonia’s central bank lowered its benchmark interest rate by 25 basis points to 5.80%, marking its second consecutive cut after holding rates steady for six consecutive sessions. This decision reflects the central bank’s assessment that current economic conditions allow for a cautious normalization of monetary policy. The annual inflation rate increased slightly to 2.6% in September, largely due to rising food prices caused by adverse weather conditions affecting agricultural yields. The central bank anticipates an average inflation rate of around 3.5% for 2024. On a positive note, economic growth accelerated to 2.3% in the second quarter, aligning with projections, while the banking sector shows solid deposit growth and credit activity.