December 16 (SeeNews) - North Macedonia's central bank said on Wednesday it decided to hold its policy rate unchanged at 1.5% after cutting it three times since the beginning of 2020.
The previous rate cuts, accompanied by reduced offering of Treasury bills, have contributed to a rise in the liquidity in the banking system and supported the flow of credit to the economy, the central bank said in a statement.
The central bank also decided to offer 10 billion denars ($197.4 million/161.9 million euro) worth of central bank bills at an auction on December 16, unchanged in comparison with the amount offered at the last auction held on November 11. The central bank's policy rate is the interest rate on the central bank bills.
The central bank concluded that the economic flows are currently stable and the latest macroeconomic indicators are generally in line with expectations. However, the uncertainty and risks related to the Covid-19 pandemic remain, both globally and domestically, the central bank added.
In terms of inflation projections, the central bank's forecast for 2020 is assessed as balanced as the cumulative inflation of 1.1% for the first 11 months corresponds to the expected inflation rate for the full year, it noted.
Earlier in December, the bank increased its end-2020 inflation forecast to 1.1% from around zero projected in April.
The central bank last changed its policy rate in May, cutting it to 1.5% from 1.75%.
(1 euro = 61.76 denars)