N. Macedonia Central Bank Cuts Key Interest Rate Again

(RTTNews) - North Macedonia's central bank lowered its key interest rate for the fourth straight policy session, but rate-setters felt the need to remain cautious with policy normalization in the backdrop of more pronounced risks to the economic outlook.

The Executive Board cut the interest rate on treasury bills by 20 basis points to 5.35 percent following the session on February 4, the National Bank of the Republic of North Macedonia announced on its website on Wednesday.

The previous change in the rate was a 25-basis point reduction in December.

Policymakers assessed that despite the relatively favorable trends so far, risks still exist and are more pronounced, the bank said.

Hence, they decided to continue with the cautious normalization of the monetary policy stance.

Inflation is moving within expectations, the bank observed.

The interest rates on overnight and 7-day deposits were left unchanged as well as the supply of treasury bills at the regular auction at MKD 10 billion.

The central bank expects the current level of interest rates and other policy actions to contribute to price stability in the medium term and to the stability of the denar exchange rate against the euro.