December 14 (SeeNews) - The central bank of Macedonia, NBRM, said on Wednesday its decision to lower the coupon of the central bank (CB) bills, which serves as Macedonia's benchmark interest rate, reflects the stabilisation of the country's economy.
Earlier on Wednesday the central bank said it lowered the coupon on its CB bills to 3.75% from 4%, selling 23 billion denars ($397.9 million/374 million euro) in 28-day CB bills, in line with its target, at an auction two days earlier.
NBRM's operational monetary policy committee took the decision to cut the CB bills coupon on Tuesday, following an improvement in the foreign currencies market and bank deposits, it said in a statement posted on its website. Foreign currency liquidity has also increased during the last six months, it added.
Macedonia's economy expanded 2.4% in the third quarter, as the growth was driven mainly by consumption and export.
In the January-November period Macedonia posted an average deflation of 0.2%. According to central bank projections, the average annual inflation will be 0% for 2016.
The bank last changed the benchmark interest in April, raising it to 4% from 3.25% previously due to "increased demand for foreign currency and pressures on banks' deposit base, which were entirely due to the deteriorating expectations of economic agents, caused by the unstable political situation in the country".