Skopje, 23 March 2023 (MIA) - We see positive signals of reduction in inflation, which has been in a downward trend since October last year, but we must maintain prudent monetary policies, National Bank Governor Anita Angelovska-Bezhoska told a panel on "Monetary and fiscal policy in a world with high inflation" within the Vienna Initiative full forum held in Skopje on Thursday and Friday. 

Angelovska-Bezhoska told the forum hosted by the National bank that though certain signs are visible, the future of inflationary dynamics in some countries, such as North Macedonia, will certainly depend on the persistence of mobile shocks, on vulnerability to shocks and significant credit growth that will reduce pressures on medium and long term.

"We must maintain prudent monetary policies. But given the complex monetary shocks we face it is crucial that monetary policies must be supported by fiscal policies to prevent wage increases that are not linked to productivity growth," the Governor stressed. 

Finance Minister Fatmir Besimi agreed with Angelovska-Bezhoska's position, pointing out that it is necessary to work on all different points of view regarding prices.

"This year we have a slightly different projection in terms of annual inflation, but in terms of policies, we are trying to maintain consistency in measures. From a budgetary point of view and from the point of view of government policies, it is important to ensure the financing of what we project, given that today's uncertainty is the new certainty," said Besimi. 

All of us, the Minister added, were preparing for a difficult winter and that gave us room to establish a balance between monetary and fiscal policies.

"We are now entering the spring time in terms of spending and hopefully we will balance out, but economic activity remains lower than we projected. I hope that next year we will have better conditions and that we will maintain our basic projections," said Besimi. 

Photo: MIA archive