Governor Radović Attended the Regional Governors’ Meeting
15/03/2024
The CBCG Governor, Ms Irena Radović, attended the Regional Governors’ Meeting in Split.
The meeting of the highest representatives of the region’s central banks discussed the effects of the current inflationary and broader economic environment on monetary policy creation. Governors concluded that central banks should continue closely monitoring the impact of further developments in inflation and interest rates on the financial sector. The meeting participants sent a message that “taking measures to strengthen further the banks’ resilience and continuous monitoring of potential risks while advocating an adequate education and consumer protection policy should be our key priorities.”
As part of the event, the governors also participated in a round table at the Faculty of Economics in Split titled “Banks and Consumers amid High albeit Falling Inflation and Increasing Interest Rates”. On the eve of the governors’ discussion on this topic, Alfred Kammer, the Director of the European Department at the International Monetary Fund, addressed the audience.
In her presentation, Governor Radović highlighted declining inflation in Montenegro and expected the trend to continue during the year. “Apart from external factors, high inflation in Montenegro in the previous period resulted from strong growth in the population’s aggregate demand due to increased wages and the influx of a large number of non-residents,” she pointed out.
High interest rates, resulting from the ECB’s monetary policy tightening, were a roundtable topic, especially in the context of record banks’ profitability in the region and the EU.
Governor Radović informed her colleagues that commercial banks in Montenegro are highly responsible, as shown by accepting the CBCG initiative related to lowering interest rates. “By accepting the initiative, the banks have shown a high degree of social responsibility and sent a strong message of their commitment to creating preconditions for improving the citizens’ living standards,” Governor Radović informed. She emphasised that the CBCG would continue its focus on creating and implementing an adequate consumer protection policy and improving financial knowledge.
After individual presentations, the governors answered numerous questions from students and business people who attended the meeting.