. the banking system continues to be well capitalised, with sound financial parameters. but, the banking system ’ s lending continues to reflect the private sector ’ s weak demand for funds, resulting from the downward credit demand and added prudence by banks when lending. * * * new available data support our assessment for gradual growth of the economy in the quarters ahead. the transmission of the monetary stimulus, payment of arrears by the government to businesses, and improvement of confidence are expected to boost consumption and investments in albania. also, the steady recovery of the global economy is expected to boost foreign demand and its contribution to aggregate demand. the albanian economy, however, is expected to operate below its potential in the period ahead. below - potential economic growth and low inflationary pressures from the foreign sector are expected to be reflected in low inflation rates, in the short - term period. at the end of discussions, the supervisory council decided to keep the key interest rate unchanged, at 2. 75 %. this policy will help provide the requisites for complying with the inflation target and is consistent with our projections for inflation rates returning within the target band in the medium term. in this context, i avail myself of this opportunity to underline that the bank of albania expects a better response by the banking system with regard to lending. this response should take into account, among others, the positive prospective of economic development in albania and the stimulating policies applied by the bank of albania. based on the available information, the bank of albania deems that expected economic and financial development requires maintaining the easing monetary policy stance in the quarters ahead. bis central bankers ’ speeches

a very significant structural change, which has improved the conditions for investment and trade in the euro area. all things being equal, this much more stable environment facilitates decisions by producers, investors and consumers. it increases the confidence of economic agents and is therefore favourable to growth and job creation. had the single currency not existed, the various crises that have occurred at the global level over recent years would have translated into major turbulence for our economies. my third comment relates to the very powerful impact the euro has had on the creation of the single market. the euro has led companies to see the euro area as a whole as the relevant domestic market for their business, rather than their own national markets as in the past. in this respect, the single currency has undoubtedly been a catalyst for the progressive reshaping of the european productive sector, which are in turn creating a more efficient and vibrant economy. low medium and long - term market interest rates, better protection against external risks and shocks, and the strengthening of the european productive sector are all important benefits for the citizens of the euro area. it is always difficult to compare what you have with what you would have, had the euro had not been established five years ago. the present benefits are extremely substantial, a fact which is unfortunately not very often stressed. let me summarise the advantages for the citizens of the euro area, which would not exist without the euro : • the credible medium and long - term protection of their purchasing power throughout the euro area ; • the credible medium and long - term preservation of their savings throughout the euro area ; • favourable financing of their medium and long - term investment, in particular in housing, throughout the euro area ; • a total elimination of adverse effects on households from intra - european crises such as those observed in 1992 and 1993 ; and finally • a more efficient and resilient productive sector, which is particularly important in a global environment of renewed healthy competition, both within the industrialised world and between industrialised countries and emerging economies and economies in transition. let me add one final remark. i know that some of our fellow citizens have the feeling that euro area inflation has been, and perhaps continues to be, above the levels of cpi inflation computed by national institutions and by eurostat. i want to tell them that the figures published are not underestimating inflation. but i also want to tell them that the governing council of the ecb is fully aware of their fears. i want to assure them of our determination to preserve price