What changed
2026-07-29 23:20 UTC → 2026-07-31 10:46 UTC ·
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North Macedonia inflation and monetary inflation, policy and loan rates
In early July 2026 North Macedonia posted a 0.5 % monthly deflation, Macedonia’s inflation trend remained subdued in mid‑2026, with annual inflation slipping to at 3.4 % in June. June and a 0.5 % monthly deflation. The National Bank of North Macedonia left kept its policy rate unchanged at 4.25 % after a modest hike an earlier in the year, modest hike, forecasting an average inflation of about around 4 % inflation for 2026 the year and further easing in 2027. By late July External risks such as geopolitical tensions and commodity‑price volatility were noted but judged manageable. In June, the central bank confirmed the rate hold, noting reported that the average inflation fell interest rate on total loans slipped to 4.6 4.67 %, a marginal 0.02‑point monthly decline and 0.36‑point drop year‑on‑year. The average deposit rate held at 2.17 % in Q2 with a slight 0.03‑point decrease YoY. New approved loans were priced at 4.38 %, down 0.04 points both month‑on‑month and year‑on‑year, while newly applied deposits rose to 3.4 % in June. 2.54 %, up 0.33 points month‑on‑month and 0.19 points YoY. These modest movements suggest a gentle easing of credit conditions that aligns with the bank’s stable policy stance. Foreign‑exchange reserves stood remained robust at €4.936 billion, comfortably above and the safety threshold. The current‑account deficit narrowed to 1.6 % of GDP in Q1, while net financial inflows reached 2.9 % of GDP. Real economic activity grew 3.1 % YoY in Q1, and GDP growth is supporting the denar’s stability as the economy projected at 3.5 % GDP growth for the full year. The bank reiterated that external risks – geopolitical tensions and commodity‑price volatility – remain but judged the monetary stance appropriate to preserve denar stability. 2026.