TIRANA, May 12 /ATA/ The monetary policy report for the second quarter of the year shows that the recovery pace of economic activity accelerated and economic outlook has been improving during the last two quarters.
BoA points out that forecasts for the outlook remain positive. The continuation of vaccination process in Albania and globally, monetary and fiscal stimulus, and the return of confidence at historic levels will pave the way for the progressive expansion of economic activity in the next years.
Both employment and wages are expected to trend upwards, by enabling inflation to converge to target rate within 2022. The full recovery of economy and the stable increase of inflation towards the target should continue to be supported by a simulating profile of economic policies.
The Supervisory Council deems that the current stance of monetary policy is accommodative and decides to keep the policy rate unchanged at 0.5 %. The balance of risks continues to remain on the downside over the short run, while medium-term risks appear more balanced. Any timely normalization of monetary policy will be cautious, by neither compromising the stability of economic recovery and nor damaging the prospects for inflation return to target.
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