At each monetary policy meeting it is therefore a matter of choosing the repo-rate path that according to the corresponding forecasts for inflation and unemployment best stabilises these around the inflation target and a long-run sustainable rate respectively. In recent years I have therefore entered reservations against the majority decision, preferring a lower repo-rate path as I consider this would lead to better target fulfilment for inflation and unemployment. Several objections to my view of monetary policy have been expressed in the monetary policy discussion. As far as I understand it, these objections are that monetary policy should have more objectives than stabilising inflation and unemployment or other real-economy objectives than stabilising unemployment. The objectives of price stability and the highest sustainable employment – from which stabilisation of inflation and unemployment follows – can thus be set aside for a period if one wants to slow down growth in mortgage lending or to hold interest rates at a higher level, as low interest rates are assumed to build up imbalances. But several objectives, and unclear ones, would risk making monetary policy arbitrary and disjointed. This is contrary to the government bill, according to which the delegation of monetary policy to an independent Riksbank requires a clear objective for monetary policy. This is to ensure there is no scope for arbitrary monetary policy and so that the Riksdag (the Swedish parliament) can evaluate monetary policy on the basis of the established objectives.
Dimitar Bogov: World Savings Day - the importance of savings in Macedonia Speech by Mr Dimitar Bogov, Governor of the National Bank of the Republic of Macedonia, in front of the Banking Association of the Economic Chamber of Macedonia, marking 31 October the World Savings Day, Skopje, 31 October 2017. * * * Ladies and gentlemen, dear bankers and guests, It is a great pleasure to address you on the occasion of marking the World Savings Day. This is the day when we emphasize the important role of savings, not only in terms of its role as a source of funding for the banks, but also its immediate importance for the economy as a whole and for maintaining financial stability. All of us, you as bankers and we in the National Bank, as regulators, have many times been convinced in the truth of the saying that maintaining bank stability reflects the depositors’ confidence. This year, the banks enjoyed the trust of the population, regardless of the unfavorable influence of the domestic political developments on the ordinary citizen and the depositor. This is also confirmed by the latest available data on the movement of household deposits. As of September, household deposits show a very solid growth rate of 5.8%, which is an important indicator for stabilizing depositors’ expectations and perceptions amid unstable environment and restraint of economic agents from investment in the first half of this year.