Skopje, 13 October 2023 (MIA) — Inflation has slowed and is expected to go down without the world economy falling into recession, although global inflation rates remain high and central banks have to consider risks stemming from geopolitical fragmentation and climate change, IMF Deputy Managing Director Bo Li, National Bank Governor Anita Angelovska Bezhoska and National Bank Vice-Governor Ana Mitreska concluded at a meeting held within the Annual Meetings of the World Bank Group and International Monetary Fund in Marrakech, Morocco.

According to a National Bank press release, meeting participants agreed that amid unpredictable global events it was necessary to maintain a cautious approach in policy-making and provide room for responding to potential new shocks.

The meeting reviewed the measures the National Bank had taken to tackle inflation and to maintain financial stability.

The central bank's response included "liquidity, interest rates and mandatory reserves," the release says, "complemented by the adopted macroprudential measures, which has strengthened the banking system's stability and contributed to the prevention of credit users' excessive debt."

This made it possible to slow down inflation and strengthen confidence in the domestic currency, Governor Angelovska Bezhoska is quoted as saying at the meeting.

The meeting also discussed the IMF's Precautionary and Liquidity Line, an instrument that provides liquidity to overcome shocks and challenges during crises, which was granted to North Macedonia in 2022.

The approval of this liquidity line was the result of the IMF's evaluation that the economy was stable, the National Bank release notes. mr/