Skopje, 2 October 2022
"In times of pronounced inflationary pressures, central banks must stick to their primary objective, which is medium-term price stability, which without any doubt imposes the normalization of monetary policy." Of course, during the normalization of monetary policy, central banks take into account the effects on economic growth and the stability of the financial system" ‒ said the Governor of the National Bank of the Republic of North Macedonia, Anita Angelovska-Bezhoska, who attended the Summit of Finance Ministers, National Bank Governors and Tax Administration Directors of the Region titled as "Financial and monetary stability of the region in conditions of pronounced geopolitical risks", held in Montenegro.
During the Summit, Governor Angelovska-Bezhoska took an active part in the panel discussion on "Monetary policy in an inflationary environment", at which the governors of Montenegro, Serbia, Slovenia, Bosnia and Herzegovina, Albania, Kosovo and the Vice-Governor from Croatia also discussed. The participants of the panel discussion emphasized the significant acceleration of inflation in all countries in the region, which reached an average of 13.5%, as well as the pressures of the energy shock on foreign exchange markets, which imposed the need to tighten monetary policies in the region. This is especially evident because the FED and the ECB, which largely define the global financial markets, have already raised interest rates on several occasions, and the FED is already lowering market liquidity. This also reduces the space for other central banks to act. "If the central banks in the region do not take measures that will follow the cycle of the FED and the ECB, then they may face risks of capital outflows or lower capital inflows, and thus increased pressures on the foreign exchange market," the Governor said. All participants of the panel discussion agreed that maintaining the stability of the exchange rate is extremely important for stabilization.
The Summit gathered in one place the key fiscal and monetary policymakers, representatives of international financial institutions and the heads of the largest banks, companies and insurance companies from the entire region, who this year exchanged opinions on the necessary cooperation of monetary and fiscal policy in dealing with challenges and taking measures to mitigate the negative consequences of the economic crisis.
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