In countries such as Italy and Germany, supports in the form of capital, credit and other liquidity were employed in addition to the fiscal policy. Meanwhile, in emerging markets, economies were supported by various measures, although these measures were more limited compared to advanced economies. With the rate cut decision we took at the Monetary Policy Committee Meeting on 17 March 2020, we announced our first set of measures geared towards countering the economic effects of the pandemic. These measures aimed to; (i) (ii) (iii) (iv)  enhance predictability by providing banks with flexibility in Turkish lira and foreign exchange liquidity management, offer targeted additional liquidity facilities to banks to secure uninterrupted credit flow to the corporate sector, boost cash flow of exporting firms through arrangements on rediscount credits, and boost the liquidity of the Government Domestic Debt Securities (GDDS) market. The uninterrupted and smooth functioning of financial markets, the credit channel and firms’ cash flows was essential to contain the adverse effects of the coronavirus. The measures taken boosted the financial sector’s liquidity and credit conditions, and the monetary transmission mechanism continued to function effectively. 5  In sum, we aimed to support financial stability and the post-pandemic recovery process by providing much-needed liquidity to the financial system and the real sector under appropriate conditions during the pandemic. Thus, we sought to minimize the long-term damage to production and employment that may be caused by temporary effects arising from the pandemic.
Ardian Fullani: Overview of Albania’s latest monetary and economic developments and outlook Speech by Mr Ardian Fullani, Governor of the Bank of Albania, on the Monetary Policy Decision of the Bank of Albania’s Supervisory Council, Tirana, 25 June 2014. *  *  *  The Supervisory Council of the Bank of Albania reviewed and approved today the monthly Monetary Policy Report. Based on the most recent economic and monetary developments in Albania, and following the discussions on their outlook, the Supervisory Council decided to keep the key interest rate unchanged, at 2.50%. The Council considers that the gradual transmission of earlier interest rate cuts to the financial markets will provide adequate monetary conditions for inflation to return to target over the medium term. Let me now proceed with an overview of the economic developments and key issues discussed at today’s meeting. *** Annual inflation rate was 1.6% in May, slightly down from the previous month. Inflation fell due to the reduction of health care prices, while prices of other items in the basket recorded low volatility. As with previous months, annual inflation continues to be determined by unprocessed food prices, which contribute around 88% to its final rate. From the macroeconomic perspective, the performance of consumer prices continues to reflect weak inflationary pressures, both from the domestic economy and the external sector. The negative output gap does not favour an increase in employment and wages, leading thus to a low increase of other production costs.