To sum up, weighing all the relevant indicators and adopting a forward-looking and mediumterm perspective, the Governing Council regards the current level of ECB interest rates as appropriate with a view to maintaining the outlook for continued price stability. Aspects of the Eurosystem’s communication policy The Treaty acknowledges that it is important in a democratic constitution for an independent central bank to be open, transparent and clear about the reasoning underlying its actions. Therefore, a number of reporting obligations exist for the ECB which aim at making the ECB accountable for its performance. Moreover, by communicating clearly with the public, the Eurosystem reinforces its credibility. In this regard, the Eurosystem’s approach bears comparison with the best practices of any other central bank. In practice the ECB has committed itself to exceeding the stringent requirements of the Treaty concerning transparency and accountability. For example, the ECB releases each month a bulletin providing detailed background information regarding the current assessment of the economic outlook. At the same time, with the more extended editions of the bulletin in March, June, September and December, we fulfil the Treaty requirement to publish a quarterly report. For the benefit of the general public, the ECB issues regular press releases and an introductory statement by the President, which is released immediately after the first Governing Council meeting each month. Furthermore, the ECB submits an annual report on its activities to the European Community institutions (the Council of the European Union, the European Commission and the European Parliament).

Financial markets continue to highlight downward liquidity premiums and inflation. The interbank interest rates have further declined, remaining close to the key interest rate and displaying low volatility. A more moderate government demand for funding and the shortterm interest rate cut in the money market have been reflected in an overall decline in the yields on primary market government securities. Our assessments on economic outlook suggest a moderate economic growth for the remainder of the year and for the next year. Boosted uncertainties surrounding the global economy make their impact on current and expected developments of the Albanian economy. In particular, the situation of our trading partners is expected to be reflected in a sluggish foreign demand for Albanian goods and services. Also, the need for maintaining budget deficit and public debt parameters is expected to materialize in the public sector’s lower contribution to aggregate demand over the period ahead. Under these conditions, the performance of economic activity at home will be determined substantially by the extent and speed of recovery of the private sector demand – consumption and private investments. Despite the positive growth, aggregate demand is expected to remain below the potential of the Albanian economy, determining the incomplete capacity utilization in the economy and generating demand-driven low inflationary pressures. Considering the materialization of these expectations and projections for further weakening of inflationary pressures from global conjuncture, annual inflation is expected to be within the Bank of Albania’s target in the medium run.