Ardian Fullani: Overview of Albania’s latest economic and financial developments Speech by Mr Ardian Fullani, Governor of the Bank of Albania, on the Monetary Policy Decision-Making of the Bank of Albania’s Supervisory Council, Tirana, 30 October 2013. *  *  *  Today, on 30 October 2013, the Supervisory Council of the Bank of Albania reviewed and approved the quarterly Monetary Policy Report. Based on the most recent monetary and economic developments in Albania, and following the discussions on their outlook, the Supervisory Council of the Bank of Albania decided to keep the key interest rate unchanged, at 3.5%. The Council notes that the inflationary pressures deriving from the real and financial sectors of the economy are weak and will continue to remain so. These circumstances require the stimulating monetary policy to persist in the period ahead. The monetary stimulus, transmitted through the low key interest rate and continuous injection of liquidity, provides the required conditions for meeting our medium-term inflation target. Let me now proceed with an overview of the economic developments and key issues discussed at today’s meeting. *** The Albanian economy was characterised by slow economic growth and weak inflationary pressures throughout 2013. Economic growth slowed down to 1.1% in the second quarter, while available information suggests weak economic activity will continue in the third quarter. The weak private demand offset the increasing positive impulses generated by the fiscal stimulus and foreign demand, in the first half of the year.
The Bank of Albania will continue to supply the banking system with adequate liquidity for the smooth functioning of financial markets. *** At the end of discussions, the Supervisory Council decided to keep the key interest rate unchanged, at 3.5%. The Supervisory Council deems that the current monetary conditions are adequate to meet our medium-term inflation target, and provide the monetary stimulus necessary to recover the domestic private demand. BIS central bankers’ speeches  3