N. Macedonia's c-bank raises policy rate to 4.25%

The central bank also decided to increase the interest rate on overnight deposits by 0.75 pp to 1.7% and the rate on seven-day deposits also by 0.75 to 1.75%, it said in a press release on Wednesday.

In taking its decision the central ban has taken into account the continuously increasing inflation rate.

According to the most recent data, inflation reached 19.8% year-on-year in October, and the average inflation rate for the January-October period of 2022 was 13.2%, the central bank said. The main factor for the rise in the inflation rate was the increase in the import prices of food and energy.

The central bank also decided to offer 10 billion denars ($168.5 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 on October 12.

Since the beginning of 2022, the central bank has raised its key rate six times - in April, May, June, July, September and October.

(1 euro = 61.62 denars)