TIRANA, Dec 17 /ATA/ – Albania’s central bank on Wednesday kept its key interest rate unchanged at 2.5%, citing steady economic growth and contained inflationary pressures.
The Bank of Albania’s Supervisory Council also decided to keep the overnight deposit rate at 1.5% and the overnight lending rate at 3.5%, Governor Gent Sejko told a news conference.
Sejko said the Albanian economy continued to expand, while key indicators of economic, monetary and financial stability remained solid.
“Inflation rose slightly in the third quarter, but it remains low and below our target,” he said, adding that financial markets had been broadly calm and lending activity had increased.
According to Governor Sejko, the central bank’s monetary policy had made a positive contribution to these trends, helping to contain inflationary pressures and expectations through timely action.
He said close coordination with fiscal policy and developments in the exchange rate had supported an accommodative monetary environment, boosting credit growth, consumption and investment.
Sejko said economic growth was expected to remain close to current levels over the medium term, while inflation was forecast to return to target in the first half of next year.
“In these circumstances, the Supervisory Council judged that the current monetary policy stance remains appropriate,” he said.
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