At the regular meeting of the NBRM's Operational Monetary Policy Committee held on 3 May 2016 it was decided the interest rate on CB bills, as the policy rate, to be increased by 0.75 percentage points, from 3.25% to 4%.
The decision to tighten the monetary policy is a reaction to the 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. Thus, the change in the interest rate is a response to the action of factors of non-economic nature. On the other hand, the NBRM continues to assess the economic fundamentals as sound, in the absence of major imbalances in the economy. All recent indicators point to solid economic and credit growth, without price pressures and without pressures in the external sector. The current account deficit remains moderate, with positive spillover effects from structural changes in the export sector and with enough financial inflows for its financing. Also, all foreign reserves indicators continuously show their adequate level, enough to deal with shocks. The NBRM, as before, will continue to closely monitor the developments in the period ahead, and if appropriate, will further amend the monetary policy to fully stabilize the situation and the expectations of economic agents for successful achievement of the monetary policy objectives.
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National Bank of the Republic of Macedonia