Governor Žugić at the Meeting of the Central Banks Governors’ Club of Central Asia, Black Sea Region and Balkan Countries
21/11/2019
The Governor of the Central Bank of Montenegro, Mr. Radoje Žugić, participates at the 42nd meeting of the Central Banks Governors’ Club of Central Asia, Black Sea Region and Balkan Countries, taking place in Prague from 20 to 22 November.
This year’s meeting of the Governors’ Club focuses on current issues related to global economic trends, and to monetary policy and its priorities that should ensure financial stability, support economic growth and provide the strengthening of the financial system’s resilience.
The attendees assessed that globalisation has a great impact on all global and national macroeconomic indicators, requiring an active role of central banks. At the same time, the spillover effects, especially resulting from the decisions of the European Central Bank (ECB) and the Federal Reserve (Fed), affect national economies and their financial prospects. They concluded that this required a synchronised and coordinated response from the central bank community.
In his speech, Governor Žugić noted that there was a risk that the policy of low reference interest rates would lead to global stagflation. To avoid this risk, “measures to be taken have to gradually encourage consumption and stronger investments, which will lead to normalisation of interest rates and more sustainable economic growth,” said Žugić.
The Director of the Department for Financial Stability, Research and Statistics of the Central Bank of Montenegro, Mrs. Marijana Mitrović Mijatović, participated in the work of a panel dedicated to data management in the monetary policy context. At this panel, the experts exchanged views on the challenges that central banks face in producing reliable statistical data necessary to make appropriate decisions concerning macro-prudential policy.
Twice a year, the Central Banks Governor`s Club of Central Asia, Black Sea Region and Balkan countries gathers governors and other senior officials from the monetary policy and finance with the aim of exchanging views on current issues and further improving of mutual cooperation. Membership in this prestigious organisation enables the CBCG to strengthen regional cooperation in the monetary, financial and banking sectors further and to establish closer relations with central banks from the region.