Monetary Policy Report for the second quarter of 2010

Economic and monetary developments of the first two quarters of 2010 were by and large in line with Bank of Albania’s forecasts. Economic activity has slightly improved, inflation pressures have been downward and the external balances of the Albanian economy have recovered. In the meantime, the financial markets were provided a breathing space and featured lower risk premia, improved liquidity figures, downward interest rates and relative exchange rate tranquillity. The upcoming period is expected to feature similar characteristics.