Since then, long-term rates in the US as well as in Switzerland and the euro area have continued to decline, as they have been doing since autumn 2018. The yield on 10-year Swiss Confederation bonds currently stands at –0.45%, around 35 basis points lower than in December. The global decline in long-term interest rates reflects the heightened risks. Finally, inflation expectations have declined slightly in Switzerland by comparison with December. However, they remain within the range of 0% to 2% that we equate with price stability. Monetary policy outlook  Ladies and gentlemen, allow me to summarise the key messages with regard to our monetary policy. Inflation and inflation expectations in Switzerland are consistent with our definition of price stability. The conditional inflation forecast for the current year is slightly higher than in March, but it remains essentially unchanged looking at the medium term. Our economy is likely to grow by around 1.5% this year. However, the risks are to the downside. The Swiss franc remains highly valued, and the situation on the foreign exchange market is still fragile. Against this backdrop, our expansionary monetary policy remains necessary. With the negative interest rate and our willingness to intervene in the foreign exchange market as necessary, we support economic activity and ensure price stability. Ladies and gentlemen, thank you for your attention. It is my pleasure to give the floor to Fritz Zurbrügg. Page 5/5

The Bank of Albania judges that in the period ahead, inflationary pressures along the time horizon of monetary policy stance will remain relatively high, but their intensity will decrease during the year. In the following, I will analyse in detail the factors determining inflation developments and related risks. During the first months of 2011, global economic activity continued to grow, although the signals coming from confidence indicators suggest that risks associated with these positive developments are in place. Global inflationary pressures have increased as a consequence of a higher demand and persistent supply-side shocks. In advanced economies, fiscal consolidation and public debt reduction remain the major concerns, whereas inflation pickup has decreased the space for monetary stimulus. In advanced economies, the positive global demand momentum has led to increased aggregate demand, while the upward inflationary pressures have made the central banks respond by tightening the monetary policy. In financial markets, the public balance health has determined the yield performance in several countries, while the political tensions have elevated the demand for safer instruments. The outlook remains highly uncertain, as a consequence of higher global prices, fiscal consolidation in some euro-area countries and less space for fiscal and monetary stimulus. Returning to Albanian economy, the latest data on 2011 Q1, obtained from business confidence surveys, the performance of external trade activity, and monetary and fiscal indicators, support the continued recovery of the domestic economic activity, primarily due to positive contribution of production sector. External demand and fiscal stimulus are factors of major influence on this growth.