There is a risk that policy of low reference interest rates might lead to global stagflation, said governor of the Central Bank of Montenegro, Mr Radoje Žugić, at the meeting of the Governors’ Club of the countries of Central Asia, Black Sea region and the Balkans.
“With the aim of avoiding this risk, we must take measures that will gradually stimulate consumption and investment, leading to the normalization of interest rates and more sustainable economic growth”, said Mr Žugić.
This year’s meeting of governors is dedicated to the current questions relating to economic trends in the world, monetary policy and its priorities.
Participants stated that globalization had enormous impact on macroeconomic indicators at global and national level. Effects of “spillover” have an impact on national economies and their financial prospects, requiring synchronized and coordinated response of the central banks’ community.
Director of the Sector for Financial Stability, Research and Statistics, Mrs Marijana Mitrović-Mijatović, took part in the activities of the panel dedicated to data management in the context of monetary policy.
The panel discussed challenges central banks are faced with in the provision of reliable statistical data necessary for adequate decisions in the segment of macro-prudential policy.
