of domestic goods and services. meanwhile, domestic output expansion remains robust on account of the expansion in capital formation and household consumption, as well as strong performance of the services and industry sectors. recent high - frequency sector indicators of economic activity also continue to point to firm growth prospects in the near term. the growth momentum was also supported by a strong and stable philippine banking system. during the review quarter, banks ’ balance sheets exhibited sustained growth in assets and deposits. furthermore, asset quality indicators remained healthy while capital adequacy ratios continued to be above international standards. domestic liquidity also remained ample, driven by robust credit growth. however, amid this resilience, the philippine economy is being tested by external headwinds emanating from the recent and planned interest rate hikes by the us fed and brewing trade tensions among key economies. these are exerting depreciation pressures on the peso. the country ’ s current account deficit and higher inflation also dampened investor sentiment during the quarter. 1 / 2 bis central bankers'speeches these developments formed the backdrop for the bsp ’ s policy decisions during the second quarter of 2018. in brief, the bsp raised its policy rate by 25 basis points each in may and june, bringing the overnight reverse repurchase ( rrp ) rate to 3. 50 percent from 3. 0 percent a quarter ago. the interest rates on the overnight lending and deposit facilities were likewise raised accordingly. in deciding to hike the policy rate during the quarter, the monetary board noted that the increase in inflation expectations and in the risks of possible second - round effects argued for timely and decisive monetary policy actions from the bsp. although inflation expectations remain within the target range for 2019, elevated expectations for 2018 highlighted the risk posed by sustained price pressures on future wage and price outcomes. equally important, upside risks continued to dominate the inflation outlook, as various measures of core inflation continued to rise. meanwhile, the bsp kept a close eye on developments in the foreign exchange market and noted their potential impact on inflation in the coming months. the bsp believes that its monetary policy actions during the quarter signal its strong commitment to safeguard macroeconomic stability in an environment of rising commodity prices and ongoing normalization of monetary policy in advanced economies. the bsp likewise reiterates its support for carefully coordinated efforts with other government agencies in implementing non - monetary measures to help mitigate the impact of supply - side factors on inflation and social welfare. accordingly, the bsp will sustain

albanian tourism, of this important sector that presently contributes by 9 % to the country ’ s gross domestic product. currently the figure of 1 million tourists a year has become a reality and its perspective goes even beyond, if we continue to pay necessary economic, social and institutional attention to tourism. beyond such impressive figures, the tourism development is translated also into a constant improvement of albania ’ s image as a country under progress, of values it possesses and provides, of increased level of employment and revenues for many areas and strata of population, as provision of values of many environmental, historical and cultural, geographic and curative, economic and social potentials, etc. notwithstanding this optimistic situation, we should not forget that albania is a mediterranean country, found in one of the most developed tourism areas of the world, in one of the areas of the largest variety of types of tourism, and therefore in one of the areas where competition in tourism service is in its peak, where many of the countries of the region, with a very long tradition in this sector, have turned it into a real tourism industry. our objectives to improve rapidly and to solve qualitatively the problems of road infrastructure, water and electricity supply, sewerages, etc., should be attached to improved quality of services and implementation of standards, completion of regulatory and urban plans for all tourism areas, variety of types of tourism and tourism products. besides the coastline tourism, which is dominant, the mountainous and rural tourism, cultural and historical tourism, archaeological and nature tourism, curative and sports tourism, massive and elite tourism should be also developed. all these are going to make the sector and the activity directly or indirectly related to tourism absorb more investments and loans, making banks, domestic and foreign businesses, private and institutional investors, etc., more interested and guaranteed for success. you should be convinced that the banking business is observing you attentively, expecting a signal, a sparkle which is mostly at your hand. the standards are indispensable and should be respected. therefore, i would invite the local government, the business community, the individuals of saranda to be oriented towards the future, towards tourism and urban development models, similar to those of advanced countries. let me conclude by thanking you once more for your hospitality.