The National Bank of the Republic of Macedonia (NBRM) adjusts the monetary policy setup to ensure the maintenance of price stability, as legally defined main monetary objective. For achieving the main objective, NBRM applies the monetary strategy of targeting the nominal exchange rate of the Denar against the Euro. Except for price stability, NBRM watches over the maintenance of financial stability in the country, as its second legal objective, subordinated to the main objective. This means that in defining and adopting the monetary measures, NBRM intends to make them contribute to maintaining a stable and competitive market-oriented financial system. NBRM supports the general economic policy without jeopardizing the achievement of the main objective and in accordance with the principle of an open market economy with free competition.
In order to achieve its monetary objectives, NBRM has various monetary regulation instruments at its disposal. The basic and most important monetary policy instrument of the NBRM is the key interest rate of the NBRM, which is the interest rate on the Central Bank bills. NBRM takes decisions on the level of the key interest rate on a regular monthly basis. This means that on a regular monthly basis the NBRM analyzes the latest available data on the key macroeconomic and financial indicators and their significance in the context of the current macroeconomic projections. Also, it makes reassessments of the risks and the likelihood of their materialization, and based on all this information, it makes an assessment of the influences on the monetary policy setup.
Decisions on the level of the key interest rate are announced by a press release published on the website of the NBRM. The announcement contains a brief systematic review of the key factors and considerations that were taken into account when taking the actual decision. More detailed information about the perceptions and evaluations of the NBRM related to the monetary decision-making process, can be found within two different reports, the Quarterly Report of the NBRM and the Latest Macroeconomic Indicators - Current Situation Report. The analyses presented in these two reports form the basis of the information used in making monetary decisions, and are published and accessible to the general public. By their publication, NBRM seeks to contribute to better understanding of the monetary decision-making process by the general public, to more effective monitoring and evaluation of the monetary policy performances and to more effective monetary transmission. The Quarterly Report is prepared and published four times a year. The Quarterly Report contains analysis of the latest macroeconomic developments, explains the monetary policy setup in the relevant quarter and the factors influencing it, and includes annexes containing analyses of current topics in the field of macroeconomics, finance and monetary policy. A key and fundamental element of the Report are the macroeconomic projections, as an important tool in the process of making the monetary decisions. For the remaining eight meetings at which the monetary policy during a calendar year is discussed, NBRM prepares and publishes the Latest Macroeconomic Indicators - Current Situation Report. This Report analyzes the latest information on the macroeconomic developments in the country and abroad and their impact on the estimated macroeconomic environment, according to the latest macroeconomic projections, as well as on the NBRM's monetary policy setup. In the monetary decision-making process, NBRM uses several additional analyses and reports, which are of an internal character and are regularly prepared for the NBRM's needs.
The official language of the documents translated herein is Macedonian. In case of any doubt or misunderstanding, the Macedonian version should therefore be considered final.