N. Macedonia's c-bank holds key policy rate at 6.30%

The central bank also decided to keep unchanged the interest rate on overnight deposits at 4.20% and the rate on seven-day deposits at 4.25%, it said in a press release.

The central bank will offer 10 billion denars ($174.4 million/162.2 million euro) worth of central bank bills at an auction on Wednesday, unchanged in comparison with the amount offered at the previous auction held in April.

The current level of the key interest rate, in combination with changes in the mandatory reserve and macroprudential measures taken so far, will contribute to slowing down inflation and maintaining exchange rate stability, the central bank said.

In May, annual inflation accelerated to 4.5% from April's 4%, driven by both core inflation and other contributing factors, the central bank said. According to the central bank's current projections, average inflation is expected to be 3.5% for the entire year 2024.

North Macedonia's central bank raised its key policy rate five times in 2023, after increasing it eight times in 2022.

(1 euro = 61.64 denars)