TIRANA, Dec 16 / ATA/ The Supervisory Council of the Bank of Albania deems that the current monetary policy stance is adequate in supporting the country’s economic activity, so it decided today to keep the key interest rate on lek unchanged at 0.5%.
The BoA governor, Gent Sejko, in the monthly press conference said on Wednesday, that the interest rates on overnight deposits and overnight lending will remain unchanged, at 0.1% and 0.9%, respectively.
The monetary policy will remain accommodative throughout the forecast horizon, adding that the Supervisory Council finds that the balance of risks continues to remain tilted to the down side.
“In particular, the Bank of Albania notes that the current combination of economic policies remains adequate. Maintaining the stimulating trend of monetary policy is necessary to encourage low-cost lending to the economy. At the same time, the gradual reduction of the fiscal stimulus foreseen in the 2021 Budget and the medium-term draft budgets balance the need to stimulate aggregate demand with that of strengthening the public debt sustainability in the medium and long term, ” said Sejko.
“Monetary policy will continue to be accommodative throughout the forecast horizon to ensure favorable financing conditions for economic growth and to bring inflation back to target rate. Also, the Bank of Albania will continue to maintain the current form of liquidity injection operations, a form which guarantees unlimited injection in its quantity, at least until the end of the first quarter of next year “, – stated Sejko .
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