Yesterday, June 12, 2012, the Operational Monetary Policy Committee of the National Bank held its regular meeting at which the latest macroeconomic indicators, the situation in the banking system and the movements on international and domestic financial markets were reviewed.

Skopje, 13 June 2012

Press release of the NBRM 

Yesterday, June 12, 2012, the Operational Monetary Policy Committee of the National Bank held its regular meeting at which the latest macroeconomic indicators, the situation in the banking system and the movements on international and domestic financial markets were reviewed. 

Recent macroeconomic developments in the domestic economy are relatively favorable from a monetary viewpoint. There were no major pressures on the exchange rate on the foreign exchange market. During April and May, foreign reserves registered a moderate decline, which is however in line with their projected path of the last cycle of projections. Moreover, foreign reserves continue to be maintained at an appropriate level, providing sufficient room for amortization of possible adverse shocks. Inflation in April and May was within expectations, while short-term indicators of economic activity point to slower economic growth in the first quarter, compared to the previous quarter. However, the activity of banks in the credit market gains in intensity, with total loans of banks registering higher annual growth compared with projected. More evident is the growth of lending in Denars, which corresponds with the significant increase in Denar savings in the banking system.

Global environment is characterized by uncertainty and volatile movements, and the main topic on the international financial markets is still the debt crisis in the Eurozone. There are open discussions about certain Member States exiting the Eurozone, and the threat from spillover of the negative effects on other peripheral economies requires more cautious monetary policy conduct.

Domestic financial markets experience stable movements and enhanced interbank activity. Following the amendments to the monetary policy operational framework, banks actively use monetary instruments (standing overnight deposits, seven-day deposits and repo auctions), and in conditions of reduced frequency of CB bills auctions, a significant increase in interbank trading on the money markets is registered.

Taking into account the latest developments, the Operational Monetary Policy Committee found that the monetary policy stance is adequate and decided to keep the maximum interest rate on CB bills unchanged at the level of 3.75%. The amount of CB bills at the auction held on June 13, 2012 was moderately higher (Denar 29,000 mil.) than the amount that fell due (Denar 28,650 mil.), which is expected to provide and maintain the liquidity of the banking system at an adequate level.

Governor's Office