On October 9, 2012, the Operational Monetary Policy Committee held a regular meeting and discussed the recent macroeconomic indicators, the liquidity and the situation in the banking system, and the developments on international and domestic financial markets.

Skopje, 10 October 2012

Press release of the NBRM 
 

On October 9, 2012, the Operational Monetary Policy Committee held a regular meeting and discussed the recent macroeconomic indicators, the liquidity and the situation in the banking system, and the developments on international and domestic financial markets.

The recent macroeconomic developments indicate no significant changes in the monetary policy environment, but signify higher risks. Inflation accelerated due to factors on the supply side and has still not been considered highly risky. Given the further deterioration of global economic conditions, external sector has experienced downward risks to the exports and the capital inflows. Still, foreign reserves are expected to be preserved at an adequate level, ensuring an ample space as a buffer for any adverse shocks. In such circumstances, there is a need of more prudent conduct of monetary policy and close monitoring of the dynamics and inflation factors.

International financial markets developments mainly relate to the growing political and financial pressures in Greece and the difficulties of the banking system and public finances in Spain. The unfavorable labor market developments and the insufficient credit support of the banking sector additionally deteriorate the perspectives on the economic and financial conditions in the euro area. The European Central Bank has announced its readiness to intervene with unlimited amounts on the government bond markets in problem-facing countries, while on the other side of the Atlantic, the Fed set out a new stimulating program to purchase agency mortgage-backed bonds.

The National Bank continues conducting its monetary policy by applying a broad-based framework of monetary instruments. Banks have conducted active liquidity management that decreased the excess liquid assets over reserve requirement. Positive changes are also noticed in the dynamics of fulfillment of reserve requirement, which is highly stable. On the money markets, interbank interest rate remains stable and the trade in securities on over the counter market enhanced.

Taking into account the recent developments, the Operational Monetary Policy Committee concluded that the monetary policy setup is adequate to the existing economic and financial environment and did not change the maximum interest rate on CB bills (3.75%). Furthermore, the Committee decided to offer CB bills in the amount of Denar 26,300 million at the auction, i.e. at the maturity level (Denar 26,317 million).

 Governors' Office