In fact I think we probably tend to err on the side of drawing too much, rather than too little, attention to differences of opinion within the Committee which are often largely a question of nuance. But it is better in my view to err on that side rather than to attempt to submerge the differences. We do not, however, attribute particular views to particular individuals. To do so would invite prepared statements and militate against the inter-active debate which is an outstanding and immensely valuable characteristic of our meetings. It would suppress the kind of “what if” discussion in which the same individual may explore alternative views. No attempt is made to concert the outcome of the policy decision; in fact I go out of my way to discourage any kind of collusion, whether between the internal or external members of the Committee - we are, and must remain, nine independent members, individually accountable for our decisions as to how we vote. This, of course, means that the Committee is divided as often as not; but although this initially led to public comment to the effect that the Committee did not know what it was doing and could not make up its mind, it is now generally accepted as the natural order of things and helps to underline to the public at large that monetary policy making cannot be a precise science - however much it needs to be informed by all the science available to us.
Prices of unprocessed foods continued to contribute to downward annual inflation, while the contribution of other categories was relatively stable. Inflationary pressures from the demand side remain low and are conditioned by the continued negative output gap and lack of cost-related pressures on the economy. Moreover, low increase of consumer prices has reflected economic agents’ expectations on inflation. According to INSTAT data, Albania’s economy growth rates improved over the third quarter of 2011, posting an annual growth of 2.6% over this quarter. On the production side, growth was supported by branches of the industry sector and services. On the demand side, economic growth continues to be driven by foreign demand, while domestic demand remains sluggish. A similar growth model is assessed to have taken place in the fourth quarter of 2011. Based on the analysis of aggregate demand components, the Bank of Albania judges that foreign demand was the main driver of demand increase during 2011. Although not at the levels of previous year, exports continue to grow. Latest foreign trade data point to our exports annual growth by 20.7% in December. On the other hand, imports accelerated their growth rates in this month, posting an annual growth of 14.5%. This performance is reflected in the widening of the trade deficit by 12.0%, year on year. To a large degree, the trade deficit reflects price developments in international markets. In real terms, the trade deficit is assessed to have narrowed during 2011. Indirect data show that consumption was poor over the second half of 2011.