the region, the usual suspects that could trigger a financial crisis must be avoided. this implies sustained emphasis on fiscal consolidation, low inflation, appropriate policies to manage volatile capital bis central bankers ’ speeches flows, and a sustainable balance of payments. the approach to reforms, going forward, must seek to balance the “ growth and efficiency gain ” goals on the one hand with “ growth and equity goals ” on the other. fourth, since national policies at times may not be adequate in a globalised world, voice of countries in the region in global governance may have to be collectively raised. global safety nets and global surveillance would have to be seen as an integral part of financial stability initiatives. fifth, financial sector development would require a cautious approach but without stifling innovations, as the financial markets remain incomplete in the saarc region. finally, i must thank now all involved in organising this symposium, having worked tirelessly for making this event a unique experience. i thank governor dr. subbarao for his guidance for the conduct of the event. our thanks to the distinguished guests from the saarc region for making the discussions so lively. i thank the senior management of the reserve bank who are present in full strength. the burden of organisation primarily fell on the regional director of kerala and the staff from our kochi and trivandrum offices. our deepest appreciation to all of them. thanks are due to the organising teams from the department of external investment and operations ( deio ) and department of economic and policy research ( depr ) from the central office of the rbi. i thank the government of india and government of kerala for their support. i thank the kerala police for providing security coverage. special thanks are due to the hotel staff and management of zuri resort and ergo, the service provider for making excellent arrangements. i once again thank all those who have been associated with this conference directly or indirectly. thank you. bis central bankers ’ speeches

ardian fullani : overview of albania ’ s latest economic and financial developments speech by mr ardian fullani, governor of the bank of albania, on the monetary policy decision - making of the bank of albania ’ s supervisory council, tirana, 29 january 2014. * * * today, on 29 january 2014, the supervisory council of the bank of albania reviewed and approved the monetary policy statement of the bank of albania on the second half of 2013. given albania's latest monetary and economic developments and discussions on their outlook, the supervisory council of the bank of albania decided to keep the key interest rate unchanged, at 3. 0 %. the supervisory council deems that the inflationary pressures from the real and financial sectors of the economy are weak and will remain so. these circumstances require maintaining a stimulating monetary policy over the period ahead. the monetary stimulus, transmitted through the low key interest rate and ongoing liquidity injection, provides the proper conditions for meeting our inflation target in the medium term. let me now proceed with an overview of the economic developments and key issues discussed at today ’ s meeting. * * * year 2013 was a difficult one for the albanian economy. aggregate demand and economic growth remained at low levels ; inflation fluctuated around bank of albania's lower targeted band, while the budget deficit and public debt increased sharply. the unfavourable economic environment, both at home and abroad, led to this performance. moreover, albania ’ s june parliamentary elections added uncertainties to the economy and financial markets. as we have already stated, consumption and investments continue to suffer from low confidence and tight lending terms. fiscal policy is faced with a high public debt level, which has limited the possibilities for macroeconomic stimulus. on the other hand, the external environment was characterised by ongoing euro - area problems, hence limiting our export growth and making financial markets pursue conservative policies in terms of lending to developing economies. however, 2013 saw positive developments. financial markets were characterised by improved liquidity and downward interest rates, in response to bank of albania's easing monetary policy. also, introducing new financial agents and instruments has further deepened these markets. the banking system remains solid and well - capitalised, regardless of increase in non - performing loans. the current account deficit has dropped, creating better premises for a sustainable external position of the economy and stable exchange rate. these developments have contributed to maintaining macroeconomic stability. analysing the specific developments in the second half of 2013, the official data show a slowing economic