in the economy. interest rates in the deposit and credit markets followed the bank of albania ’ s easing monetary policy over the last six months, while its transmission is expected to be more complete in the future, conform to the time lag that characterises the monetary policy transmission mechanism. projections for the expected economic outlook in the future sustain our earlier assessments for positive, but below potential, growth of the albanian economy in the period ahead. however, risks about this scenario have increased, mainly as a result of unfavourable developments in the global economy and financial markets. overall, the economy in our trade partner countries is expected to be sluggish and lending terms in the euro area are expected to be tight for the period ahead. moreover, the space for fiscal stimulus has narrowed, as a result of the orientation of the fiscal policy towards maintaining fiscal parameters stability. under these circumstances, albania ’ s economic growth will be determined mainly by the performance of consumption and private investment. the latter is expected to be driven by eased domestic lending terms during 2012, but will suffer, at the same time, from the uncertainty and hesitation of consumers and private businesses. the bank of albania deems that the second half of 2011 marked a turning point towards a more normal consumer behaviour, which should be encouraged and supported in 2012. * * * taking into consideration the information set out above, the supervisory council holds that pressures on consumer prices at home remain low over the monetary policy relevant horizon and they have shifted on the down side over the past months. on the demand side, below - potential economic growth will continue to generate low inflationary pressures as shocks from the supply side are expected to be moderate. at the conclusion of discussions, the supervisory council decided to cut the key interest rate by 0. 25 percentage points bringing it down to 4. 25 %. this decision aims to provide the appropriate monetary conditions to meet the medium - term inflation target. in addition, the easing of monetary policy provides higher support for the development of the private sector ’ s demand in our economy. bis central bankers ’ speeches

michael c bonello : population ageing - a major challenge for policymakers speech by mr michael c bonello, governor of the central bank of malta, at the opening session of two workshops on pension reform, organised in floriana, malta, by the world bank institute, 9 june 2003. * * * i should first of all like to thank the world bank institute for choosing malta as the venue for this workshop and to welcome you all to our country. your presence here continues a centuries - old tradition whereby malta exploits its location at the centre of the mediterranean and its reputation for hospitality to bring people and ideas together. malta is currently undergoing a rapid transformation in a bid to seize the opportunities arising from accession to the european union and from the further consolidation of its trading relationship with its southern and eastern neighbours. the economy, albeit small, has a number of vibrant sectors ranging from high - tech manufacturing to world - class conference tourism. as in the case with many other countries, however, the long - term prospects for economic development in malta will be inevitably affected by the impact of population ageing. given that the population support ratio, defined as the number of persons of working age to those of pension age, is expected to halve over the next 25 years to just over 2, this impact is likely to be significant. the global and regional dimensions of population ageing malta is by no means an exception in this regard. by the middle of this century, the median age of the world population is expected to increase by 10 years to 36 years. globally, the proportion of persons aged 60 years and older is forecast to double. the fastest growing group of the older population is made up of those who are 80 years old or more. this age category is projected to increase more than five - fold over the next 50 years. while ageing is indeed a global phenomenon, it is likely to represent a more onerous challenge for developing countries than for developed ones. the majority of persons aged 60 and over will be found increasingly in developing countries ; and as the pace of population ageing is much faster in these countries, they will have less time to adjust to its effects than the developed countries. developing countries, moreover, will have to meet this challenge starting from a lower level of socio - economic development. for instance, the elderly in developing countries will be living mostly in rural areas and hence will face additional difficulties compared to their counterparts in developed countries who tend to live in urban centres. these differences imply that the