the analysis of the information set out above, the supervisory council holds that the risks around the expected inflation trajectory remain balanced. on the demand - side, below - potential economic growth will continue to generate low inflationary pressures, while supply - side shocks are also expected to remain contained. at the end of discussions, the supervisory council decided to keep the key interest rate unchanged at 4. 25 %. this decision aims to create adequate monetary conditions for meeting the inflation target in the medium run. it also provides proper support to boost aggregate demand. bis central bankers ’ speeches

ardian fullani : recent economic and monetary developments in albania speech by mr ardian fullani, governor of the bank of albania, at the press conference on the monetary policy decision of the bank of albania supervisory council, tirana, 29 may 2012. * * * today, on 29 may 2012, the supervisory council of the bank of albania reviewed and approved the monthly monetary policy report. based on the analysis of albania ’ s latest economic and monetary developments, and following discussions on their performance outlook, the supervisory council of the bank of albania decided to keep the key interest rate unchanged at 4. 25 %. this decision reflects the supervisory council ’ s opinion that the actual monetary conditions are adequate to meet the bank of albania ’ s inflation target in the medium run. it holds the key interest rate at a record low, thereby maintaining the strong stimulating nature of monetary policy, in order to boost aggregate demand and economic growth. this decision also reflects the heightened uncertainty deriving from the external economic environment and, particularly, from the recent economic developments in greece. let me now proceed with an overview of the economic developments and key topics discussed at today ’ s meeting. * * * annual inflation marked 1. 6 % in april, continuing to pursue an upward trajectory over the last two months and approaching the lower limit of the target band. after marking a minimum low in february, the rising trend of inflation was expected and communicated by the bank of albania. it reflects, to a large extent, the gradually subsiding supply - side shocks on inflation. the decelerated rise in primary commodity prices in the global markets, the low inflation in albania ’ s trading partners and the stable exchange rate have generated reduced imported inflation rates. however, despite increasing, inflation remains low due to the incomplete utilisation of capacities in the economy, which is reflected in weak pressures on the rise of wages and producer prices. at the same time, economic agents ’ inflation expectations are low and growth of money is in line with the demand of the economy for money. in addition, the absent rise in regulated prices has contributed to the low inflation rate over 2012. while making an analysis of the economic developments, the supervisory council noted that the reappearance of stress in the global financial markets in the current month has heightened the uncertainties in these markets markedly, being translated into more strained financing conditions for the public and private sector. the fall of foreign demand and the higher perceived risk for the entire area have started to affect the performance of