Therefore, we predict the upward trend in the current account deficit to persist in the short run also taking into account the low base effect from last year. Yet, we also envisage that the dampening effects of our recent policy measures on loans and imports will materialize as of the second quarter of the year. 8  BIS central bankers’ speeches  Distinguished Guests, 26. Domestic credit volume, which surged in 2010, accelerated further in the final quarter of the year. As the effects of the crisis waned, the number of sectors utilizing loans increased rapidly and maturities were extended. An analysis of the rise in real sector loans by sub-categories reveals that this rise was supported by the rally in both consumer and business loans. Meanwhile, loan utilization by small and medium-sized enterprises, which were those hit most severely by the crisis, increased as well. 27. I would like to underline that the vigorous loan utilization was underpinned by measures taken by the CBRT in the aftermath of the crisis with a view to maintain the functionality of the credit markets, as well as by the consequent rapid recovery in economic activity and the favorable economic outlook. Furthermore, ample global liquidity owing to the monetary easing implemented by major central banks and the favorable economic outlook providing low and foreseeable interest rates were also instrumental in stimulating loan utilization.
Crucially, Malta enjoyed the gains from a range of structural reforms that increased labour force participation, 7  raised efficiency in key economic sectors and led to the diversification of activity into new niche areas, particularly in services. Monetary policy on its own cannot deliver the full range of desirable economic outcomes. When it is accompanied by complementary and consistent fiscal policy actions, as well as by well-designed structural reforms, then monetary policy can deliver on its primary objective of price stability, while maintaining economic activity and employment close to their potential levels. 8