Angelovska Bezhoska: Inflationary trends in the region and the country are positive, yet caution is needed.

Skopje, 23 February 2024

Inflationary trends are positive. The inflation in the CEE region, as well as in the country, dropped to one-digit rates, due to the monetary tightening by central banks and stabilization of world commodities prices. Also, inflation expectations remain relatively anchored, as a significant factor that affects inflation dynamics. Despite the positive developments, central banks should carefully monitor them, since the uncertainty and risks remain, said the Governor of the National Bank, Anita Angelovska Bezhoska in a video interview for Euromoney.

The inflation in the CEE region reduced from 16% to 5%. The situation is similar in our country, where the inflation rate dropped to 3% from the record high of about 20 percent, pointed out the Governor. She highlighted that the latest inflation shock was of non-monetary nature and was affected by many factors, including the disturbances in production, trade, transport and energy prices, which led to inflation growth. There is a current stabilization of these factors, which positively affects inflation.

Angelovska Bezhoska also pointed out that despite the monetary tightening by central banks, the financial sector is stable, which reflects the measures taken by central banks after the Great financial crisis and stable banks' balance sheets with which they entered the crisis period. Banks entered the crisis with a relatively solid position, with strong capital and liquidity buffers, which were mainly built before the pandemics and have been maintained ever since, said Angelovska Bezhoska for Euromoney.