to global factors that are not exclusively related to the commodity prices fluctuations, but also to the impacts of the globalization of production and digitalization of trade worldwide, both having impact on competition and prices in each economy. in such surrounding of prolonged lower inflation, the re - assessment of the time lag in affecting the inflation as well as the inflation measurement, the outlook of inflation expectations and their possible de - anchoring are to be considered. the current economic developments and outlook point to new a global cycle and the need of gradual normalization of monetary policy. gradual approach is required to avoid the so - called “ taper tantrum ” episodes that financial markets have already experienced during the us tapering. a stronger and clear monetary policy communication should be in favor of preparing market agents for the future monetary policy changes and smother reaction when they take place. 1 / 2 bis central bankers'speeches the monetary policy normalization in advanced economies could produce different impacts for emerging economies and their monetary policy. any capital outflows would be highly dependent on the size and structure of the financial liabilities, especially regarding the existence of interest rate sensitive capital flows, that is not always the case in emerging economies with lower level of financial integration, where more usual are the direct investment, trade credits and banking sector capital flows. on the other hand, the more restrictive financial conditions in advanced economies in a medium run could eventually lead to lower external demand in the emerging economies. the impacts on the fiscal policy are more serious, implying stricter conditions for external budget financing, signaling the need to start or continue with fiscal consolidation, in the emerging economies where it has already started. having in mind country specific reasons, monetary policy normalization in emerging economies may come with different lag. speaking about the macedonian economy and countries from western balkan region in terms of facing the new global cycle, we have to mention some strong points and some still existing weaknesses. generally, sound and stable banks have additionally strengthened due to the new capital requirements during the last several years, as well as due to the stronger efforts for better nonperforming loans management and resolution. current account deficit region - wide has reduced as a result of the favorable price impact, in line with commodity prices slowdown and in the macedonian case, due to the contribution of new companies with foreign capital that significantly changed our export structure into higher value added products. we have seen positive results in the dealing with unemployment as one of the main problems in the region. in macedonia, it

times, the consumer and his protection are central to the existence of business. consumer protection is achievable by having appropriate commercial laws and open competition. but our experience in dealing with provision of financial products and services indicates that the law is heavily loaded in favour of the financial services industry. as far as competition is concerned, it has no implications for the most vulnerable sections of the society. further, the legal processes tend to be expensive and unaffordable in terms of both time and money. the good times for the financial services industry have meant expensive services and products for the common person while bad times have meant inadequate or no supply of even basic financial services. can the above contradictions be balanced without having consumer protection at its core? what did the consumer gain when the times were good for the financial services industry and why is he made to suffer today, for no fault of his, just because the industry has fallen into bad times? the disconnect between business strategy and consumer protection can only be bis central bankers ’ speeches a recipe for disaster. when mr. bill gates made the famous statement “ world needs banking but it does not need banks ” everyone perhaps was euphoric that we would soon breach the final frontier of banking. but it is going to be quite some time before we say good bye to banks. the recent past has seen product innovation and product penetration through use of technology. the challenge posed by the rapid changes in products and service delivery models is our ability to scale up our efforts regarding financial education and customer awareness. a financially literate and enlightened customer would be able to better judge the suitability of a product to meet his requirements. the question i am often asked is : “ why as a regulator, are you concerned about customer care and protection? why is it not left to the market forces and competition to take care of? ” the answer to this lies in the fact that in a service industry where market forces and competition play out freely, this may well be the case. however, banking / financial services industry being a highly regulated service industry with very stiff entry norms, consumer protection cannot entirely be left to the market forces. hence, the regulator has a role. availability of financial services / products at affordable prices on an uninterrupted basis is the purpose and result of financial sector stability. responsible marketing, responsible lending, responsible grievance redress mechanism and responsible consumer protection are not mutually exclusive but are inter - dependent. the public deposits and the