The monetary policy stance remains stable, and the key interest rate has been maintained at 4.25 percent; the National Bank possesses all the necessary instruments to respond should conditions require it, said National Bank Governor TrajkoSlaveski on Thursday.
“The National Bank makes decisions based on a rigorous analysis of macroeconomic conditions, taking into account, in every instance, the circumstances within an uncertain environment,” the Governor noted during an interview with the MRT main news broadcast, where he discussed the Executive Board’s latest decision, foreign exchange reserves (FX), inflation, and economic growth.
Regarding economic and exchange rate stability, Slaveski highlighted that foreign exchange reserves stand at approximately €5.1 billion, roughly double the pre-pandemic level of 2019. These reserves serve as a vital instrument for maintaining the stability of the nominal exchange rate, with the National Bank intervening in the foreign exchange market by selling or purchasing foreign currency, depending on market conditions.
As Slaveski pointed out, the growth in reserves is supported by favorable developments in the external sector, specifically exports and imports, foreign direct investment, and portfolio investment.
“Not only were the funds spent on interventions replenished, but foreign currency reserves also increased significantly,” saidSlaveski, adding that such trends were crucial for maintaining macroeconomic stability.
Regarding inflation, the latest data indicate moderate movements. Annual inflation stood at 2.3% in July and 2.6% in August, meaning that prices rose by 0.4% in August compared to July. According to the Governor, the August data show a relatively limited pass-through of turbulence related to energy and crude oil price fluctuations to domestic prices.
The Governor also addressed the Macedonian economy’s 4.3% growth in the second quarter, assessing it as positive that the economy is recording solid growth even amidst significant global economic uncertainty. This growth, he pointed out, is driven primarily by gross investments, particularly in infrastructure, as well as by personal consumption. The latter is influenced by rising disposable income, wages, and pensions, alongside increased lending to households and businesses.
