TIRANA, July 4 /ATA/ The Bank of Albania reduced the base interest rate to 3.0% a day ago.
The economy expert, Adrian Civici, in a televised interview, stated that the decision of the Bank of Albania to lower the base interest rate by 0.25% was anticipated.
“It has been 2-3 quarters that inflation has been on a downward trend and of course the adequate response from the Bank of Albania should have been the beginning of curbing the upward trajectory of the base interest rate, which began with 1% in March 2022, to pursue a downward trajectory in order to drive this low inflation, but at the same time as an important factor to keep inflation within that 3% range,” he said.
Civici also said that the effects on the economy may begin to be felt sooner than forecast.
According to him, one of the most tangible effects for citizens and businesses will be the reduction of interest rates for loans in Lek. This decision, according to him,
This is the reason, Civici points out, why BoA Governor Sejko breaks down the factors that led to this decision-making.
“Firstly, the positive result of economic growth and economic stability translates in calm monetary and financial markets, which have not been exposed to concerning phenomena, increase in the level of lending, especially the loan in Lek, which is proof of confidence in national currency, but it also shows a trend of this loan consumption growth to avoid the exchange rate”, said Civici.
/r.e/sm/
