We have seen an unexpectedly rapid and broad weakening in economic activity and it is clear that this will continue to be weak in the coming period. Despite global and forceful measures to resolve the financial crisis and to alleviate its effects, it is still difficult and expensive to borrow, both for households and companies. The oil price and other commodity prices have continued to fall, which leads to lower cost pressures. Inflation will fall quickly and undershoot the target next year. We considered that a much lower repo rate was necessary to attain the inflation target a couple of years ahead and at the same time contribute to ensuring economic developments are not too weak. Another reason why such a large cut was necessary is that the interest rates paid by the general public recently as a result of the financial crisis have been higher than normal in relation to the level of the repo rate, which in itself has a constraining effect. The financial crisis makes demands on us to be flexible, to act quickly and forcefully. We have tried to work in this way so far, not least by means of new solutions and measures we would not normally use. The fact that we are giving the banks the possibility to borrow in Swedish krona from the Riksbank at longer maturities than normal and that we have supplied loans in US dollars are examples of this.
Finally, let me once again welcome our guests, the experts from the Czech Republic, who will pass on the Czech experience in the realization of the decade-long EU project – the establishment of the Single European Payment Area – SEPA. I believe that today’s panel discussions will encourage all stakeholders in the national payment system of Macedonia in creating realistically achievable integration initiatives in the area of cross-border payments in euros, which would open new opportunities for Macedonian companies and citizens for effective and cheap payments in the economic exchanges with the European Union. BIS central bankers’ speeches  1