Data on developments in foreign trade of economy reveal a contracted trade exchange in the first five months of 2012. Value of exports marked a low annual growth of 1.3% in this period, reflecting the moderation of foreign demand and price developments in global markets. In this period, imports shrank by 2.0% in annual terms. These developments resulted to a decreased trade deficit in the first five months of the year by the annualised rate of 4.2%. Developments in foreign trade were determined mostly by electrical energy trade exchanges in this period. Excluding this effect, the growth in exports would be higher and the contraction in imports deeper, resulting in a contracted trade deficit, at 18.1%. The performance of monetary indicators was in line with the developments in the real economy and our analysis show contained monetary pressures on inflation. The annual growth of M3 was 8.7% in May, maintaining the average rates of the previous month of the current year. The growth paces of money supply slowed down compared to a year earlier, reflecting the lower demand of economic agents for money. The consolidated fiscal position  2  BIS central bankers’ speeches  was coupled with a decrease of public sector borrowing, whereas private agents of economy reflected a low demand for financing. Lending to the private sector rose by 7.5% in May, pursuing the slowing trend, which has started since the end of previous year.
The Bank of Albania remains heedful to future developments and new information, ready to respond in the appropriate time and extent in order to comply with its legal mission. At the conclusion of discussions, the Supervisory Council decided to decrease the key interest rate by 0.25 percentage point, at 4.0%. This decision aims to establish the appropriate monetary conditions to comply with the inflation target in the medium run. The monetary policy, also, provides the necessary support to simulate the aggregate demand. 4  BIS central bankers’ speeches