Macedonian central bank keeps benchmark interest rate at 3.25%

The central bank of Macedonia (NBRM) has decided to keep the coupon on its bills, which serves as its benchmark interest rate, unchanged at 3.25%, according to a press release. The central bank took the decision after successfully selling MKD 30bn worth of bills and luring enough bids to cover the targeted amount. The amount was higher compared to the MKD 25bn worth of notes the central bank placed in the previous auction. It noted that the improving foreign currency market and liquidity prompted it to take that decision.

GDP growth slowed to 2.4% in 2016, largely due to the political crisis that has engulfed the country. Growth came slightly above the projections of most IFIs, which expected the economy to grow by 2.2%. Still, the economic performance may further suffer this year as the political situation in the country continues to deteriorate. The CPI inflation has so far remained subdued but may accelerate this year on the back of higher food and oil prices.

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