of eased monetary policy signals is also observable in the deposits market, while it is expected to be transmitted in the future also in other market segments, conform to the time lag of the transmission mechanism. in the primary market, government security yields showed upward trend reflecting developments in relevant structural factors of the demand and supply, without signalling added risk or inflation premiums. verified developments insofar, change the basic projections for economic developments in the future. year 2012 is expected to be influenced by unfavourable developments in the global economy, which may affect the albanian economy as well. foreign demand is expected to provide lower contribution over the course of the year, impacted by economic slowdown in our trade partners. fiscal policy orientation towards further consolidation of fiscal parameters limits the space for a substantial fiscal stimulus to foster the economic activity. under these circumstances, private domestic demand remains determinant for aggregate demand increase in the future. overall, analyses suggest a better performance of private consumption and spending, helped also by the eased monetary policy stimulus. estimates of the bank of albania suggest that, in the course of the year, demand growth below the potential of the economy will continue to exercise low inflationary pressures from the demand side. at the same time, the balance of inflationary pressures generated by supply - side factors is assessed as contained, given the reduced imported inflation and anchored inflation expectations. taking into account the insofar developments and expectations for the future, bank of albania projections show that, with 90 % probability, consumer price inflation for 2012 will range within the 0. 7 % – 2. 8 % band. materialisation of this baseline scenario will be reflected in retaining the stimulating nature of the monetary policy in the course of the year. moreover, the bank of albania remains heedful to future developments and ready to respond in the appropriate time and extent in order to comply with its target on inflation. based on the analysis of the information set out above, the supervisory council holds that pressures on consumer prices at home remain low over the monetary policy relevant horizon ; they have been, however, on the down side over the recent months. on the demand side, below - potential economic growth will continue to generate low inflationary pressures, while shocks from the supply side are expected to be moderate. at the conclusion of discussions, the supervisory council decided to keep the key interest rate unchanged at 4. 25 %. this decision aims to establish the appropriate monetary conditions to comply with the inflation target in the medium run.

share of trade and investments in such sectors as textiles and clothing, metals and construction, machinery and equipment, is not reflected in a comparable share with investments in energy, tourism, agribusiness, information technology or financial sector. trade interests, penetration of capital and new technology in vital and lucrative sectors of the albanian economy need both a higher presence and stronger and more direct support from the italian financial sector. bilateral trade exchanges will continue to be determined by differences in productivity and the degree of exploitation of natural resources. these differences should be tackled until they are eliminated altogether, especially in some important sectors such as agriculture, tourism, financial services, and exploitation of natural resources. this would pave the way for further development of trade and investments, leading eventually to trade relations being no longer driven by differences but by similarities in development stage. bis central bankers ’ speeches obstacles have the same nature and characteristics that i have often mentioned in discussions on the economic growth model. they have been and remain one of the main reasons for the banking system and capital market ’ s lack of attention with regard to expanding foreign investments or further integrating trade and financial activities with our partners. the recent policies pursued by albanian authorities, also supported by the arrangement with the imf and wb, pay special attention to these sectors and reforms. this approach would significantly boost the potential for cooperation. development of agriculture, agribusiness and processing of mediterranean products, development of tourism and their successful combination in the agri - tourism sector have turned italy into a world leader in these sectors. the same holds true for the financial, energy and technology sectors. in these fields, cooperation could be stronger, and trade and financial relations between the two countries more frequent. lastly, i would like to focus on the regional dimension. albania provides the italian businesses access not only to the albanian economic space, but also to the entire western balkan region. from this perspective, i would like to draw your attention on the fact that investing in albania is a prerogative for using the advantages that south east europe offers. therefore, adapting regional development philosophy for infrastructure, labour market, human capital development, technology advancement, economies of scale, and above all, coordination of structural reforms and development policies in the region, are a great opportunity for albania and italy. optimising trade with financial relations, advancing the structural reforms, setting strategic priorities, formalising and introducing important and strategic sectors to the market ( based on ownership and use of land and other important natural resources of the albanian