The return of the economy to potential is accompanied with the strengthening of inflationary pressures and the return of inflation to target within 2018. Notwithstanding positive trends, the economic and financial environment has been a challenging one for the monetary policy. At the year start, we faced a rapid and sharp decline in inflation, as a result of acute disinflationary shocks from the external environment. Downside risks intensified. Also, extraordinary events such as Brexit or geo-political tensions in the external environment led to heightened uncertainty. 2/8  BIS central bankers' speeches  Against this backdrop, the Bank of Albania reacted with determination. The policy rate was lowered in two stages, in April and in May, down to 1.25%. The corridor of interbank rates – the floor is the rate on the overnight deposit and the ceiling is the rate on overnight loan – narrowed to two percentage points. In addition, the Bank of Albania continued to use the forward guidance to inform the public on its the monetary policy stance in the future. The use of this instrument was strengthened over the year, and was enriched with time frames. These actions signalled the willingness and capability of the Bank of Albania to fulfill its objective of price stability. The operational framework of the monetary policy did not undergo significant changes and the banking system was supplied with liquidity through traditional monetary policy instruments. The latter were adopted to better satisfy the needs of the banking system for liquidity.
Gent Sejko: Albania's economic and financial developments in 2016 Introductory statement by Mr Gent Sejko, Governor of the Bank of Albania, presenting the Annual Report 2016 to the Parliamentary Committee on Economy and Finance, Tirana, 2 May 2017. * * *  Honourable Chair, Honourable Members of the Committee, I have the pleasure of presenting today the Annual Report of the Bank of Albania 2016. This report is a synthesis of the activity of the Bank in accordance with our legal objectives, obligations that arise from relevant by-laws, and commitments with our international partners. Overall, I reckon the Bank of Albania has worked with dedication, seriousness and efficiency, in all such aspects. The policies, measures and legal and regulatory amendments we have initiated, and have provided a substantial contribution to addressing macroeconomic misbalances, bolstering economic activity, enhancing financial stability, and promoting Albania’s European integration process. In parallel to complying with our legal obligation, the presentation of the Annual Report is an important pillar of accountability and transparency for the Bank of Albania. These two commitments accompany and balance our institutional independence. In this context, I believe the Annual Report addresses many of the recommendations the Committee left for us in the Resolution “On the assessment of the activity of the Bank of Albania for 2015”.