to play in the everyday economic and financial life of the country. now that we know the already - announced objectives of the government of albania for 2018, it is understandable that 2018 is a rather challenging year to further boost economic recovery and strengthen the financial stability of albania. from this perspective, i would like to affirm that, like in 2017, in 2018 the bank of albania will continue to focus on : guaranteeing a stable economic environment, keeping inflation rates in check, and having liquid markets with low volatility. the monetary policy will aim at an adequate supply, in terms of both quantity and price. the final monetary policy objective will be unchangeable, while the accommodative stance implemented in the past years will be present during 2018. boosting credit recovery in albania. we believe that the further boosting of the economy provides a friendly environment for lending to the economy. in addition, we will continue to insist in the implementation of the joint programme for the reduction of non - performing loans. in this light, we expect the banking system to be proactive in lending to the economy. strengthening banking supervision and guaranteeing financial system stability, one of the fundamental objectives of the bank of albania activity. as in the past, we will be constantly in search of the best international rules and practices that aim at having a financially sound banking sector, capable of supporting economic development in albania. de - euroization of the albanian economy. the measures that we have jointly designed will enter into force in the first half of 2018. therefore, we should also try together to maximise the expected results, translating them in practice in greater confidence and higher use of the national currency in the economy. 2 / 3 bis central bankers'speeches continuous communication with the sector, regarding bank of albania ’ s decision making. the dialogue with the banking industry is considered as a crucial factor in helping to identify the problems, guaranteeing the implementation of the legal framework, and overcoming the challenges. increasing financial inclusion and deepening financial education. alongside with the regulatory and supervisory role, financial education is and will continue to be another important aspect of our everyday work. we consider it as one of the main pillars of the economic and social development of albania. concluding, i would like to reassure you that, the bank of albania will continue to be a serious and devoted partner. i wish you a successful and prosperous year for you and your families. thank you! 3 / 3 bis central bankers'speeches

sector. verified performance of economic activity at home and the information filtered from indirect indicators have shifted downward our basic projections for the economic performance for the rest of year. this shift reflects the materialisation of some risks around the previous basic projections, being expected and factorised in our scenarios. the domestic economy is expected to slow down during the rest of year, being conditioned by the weakening of the domestic and foreign demand. given the consolidated fiscal behaviour and the slowed foreign demand, the performance of the private domestic demand will determine the economic activity growth. however, its two components, consumption and investments, have not shown any recovery signal so far. expected developments at home and abroad result in a contained balance of inflationary pressures, determining a slow increase in consumer price in the future. the demand growth bis central bankers ’ speeches below the potential of the economy in the upcoming period will continue to exercise low inflationary pressures. at the same time, the pressures generated by supply - side factors appear contained. based on the insofar developments of the determinant factors of inflation and the projections for their development in the future, with 90 % probability, inflation will range within 1. 0 % – 3. 3 % band after 12 months. * * * based on the analyses 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 downside 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. the expected developments in economy and inflation imply that the simulating nature of the monetary policy will be retained during the period ahead. the bank of albania remains heedful to future developments and new information, ready to respond in the appropriate time and extent in order to comply with its legal mission. at the conclusion of discussions, the supervisory council decided to decrease the key interest rate by 0. 25 percentage point, at 4. 0 %. this decision aims to establish the appropriate monetary conditions to comply with the inflation target in the medium run. the monetary policy, also, provides the necessary support to simulate the aggregate demand. bis central bankers ’ speeches