Gent Sejko: Aligning monetary policy with financial stability - their objectives, responses and interaction in times of uncertainty Welcome address by Mr Gent Sejko, Governor of the Bank of Albania, at the Annual Conference 2016 "Aligning monetary policy with financial stability - their objectives, responses and interaction in times of uncertainty", Tirana, 27 October 2016. * * *  Your Excellency Prime Minister, Your Excellencies Ambassadors, Honourable Members of the Government, Ladies and Gentlemen, Dear Mr Anastasakis, Dear guests, It’s my great pleasure to welcome you to the Annual Conference of the Bank of Albania 2016. The conference is organised in cooperation with the European Studies Centre of St Antony’s College, University of Oxford. This year’s conference will focus on two main topics that prevail in the analyses and debates among policymakers, academia and professionals circles: First, possible implications from the Brexit; and Second, determining the modalities for coordinating the monetary policy with the macroprudential policy and measures, in the new reality we are facing. Together with guests from European and regional central banks, international institutions and academia, we will be discussing about the current challenges, and appropriate policies and instruments central banks need to employ. I am confident the proceedings of this Conference will produce more clarity for all participants, policy makers and private sector representatives alike. Let me elaborate in greater details the perspective of the Bank of Albania on these two topics. - Initially, I would like to present the backdrop of the current economic and financial situation.

The economies in the region seem to be set on the growth path, and are now based on a better understanding of the determining factors for the long-term development, and a more comprehensive framework of endorsing policies. The experience gained and the lessons learnt are undoubtedly elements that will help us steer safely, as we navigate our way into the future. As a typical Western Balkan country, Albania is in a similar development stage to its peers. Our analyses and forecasts confirm that the Albanian economy is on a positive track. Economic growth is expected to improve progressively over the next three years. Such growth continues to be fuelled by the recovery of the domestic private demand. The accommodative monetary policy of the Bank of Albania, the improved financing conditions and strengthening of private agents’ confidence are considered as the main elements underlying the recovery. The gradual return of the economy to equilibrium will help improve economic indicators across the board, more specifically: increase in employment; return of inflation to target; reduction of public debt; and  2/4  BIS central bankers' speeches  further strengthening of private sector balance sheets. The acceleration of economic growth in Albania attests the private sector dynamism. This is an encouraging development given that the fiscal policy implemented over this period focused on showing prudence and rendering public finance healthy, while the macroprudential policy and measures of the Bank of Albania have sought to further strengthen financial stability.