Set out in details in the previous month, these measures aim at further reducing liquidity premiums and intermediation costs in the financial markets, in order to boost lending and economic growth. Our projections for 2013 support the assessment for Albania's economic growth ranging close to past year's rates. Foreign demand will be the main driver of economic growth, while the fiscal policy is expected to contribute to growth on the same direction, but at lower intensity, in the period ahead. On the other hand, private consumption and investment remain weak and unstable. The continuation of below-potential economic growth will determine weak inflationary pressures in the upcoming months as well. In the absence of unexpected supply-side shocks, consumer prices will continue to rise at low rates. With a 90% probability, four-quarter-ahead annual inflation will range within the 0.6–3.6% band. The low annual inflation rates and forecast for their continuation over the monetary policyrelevant horizon call for maintaining the stimulating nature of the monetary policy over the next quarters. 2  BIS central bankers’ speeches  *** At the end of discussions, the Supervisory Council decided to keep the key interest rate unchanged, at 3.75%. It concluded that stimulating monetary conditions establish the proper premises for meeting the inflation target in the medium term, and contribute to the growth of aggregate demand and full utilisation of production capacities. The weak inflationary pressures determine the continuation of a stimulating monetary policy by the Bank of Albania.
Jarle Bergo: Monetary policy and the outlook for the Norwegian economy Speech by Mr Jarle Bergo, Deputy Governor of Norges Bank, at the Capital markets seminar, hosted by Terra-Gruppen AS, Gardermoen, 31 January 2002. The address is based on the assessments presented at the press conference following the monetary policy meeting of Norges Bank’s Executive Board on 23 January 2002. *  *  *  On 29 March 2001, the Stoltenberg Government issued new guidelines for monetary policy and presented guidelines for fiscal policy. The guidelines for fiscal policy imply that the central government budget deficit shall be equivalent over time to the expected real return on the Government Petroleum Fund. The changes in the guidelines for economic policy received broad support in the Storting. The budget for 2002 adhered to these guidelines. Monetary policy is to be oriented towards low and stable inflation. The inflation target was set at 2½ per cent. In general, direct effects on consumer prices resulting from changes in interest rates, taxes, excise duties and extraordinary temporary disturbances shall not be taken into account. Low and stable inflation is the best contribution monetary policy can make to growth and prosperity. In the long term, monetary policy has little effect on employment and output. Inflation is a monetary phenomenon. In the last hundred years, we have had three extended periods of inflation - during World War I, during World War II and after the oil price shocks in the 1970s and 1980s, which triggered wage-price spirals.