After discussing the economic and monetary developments in the country and their expected progress, the Supervisory Council of the Bank of Albania decided to keep the base interest rate unchanged at 2.75%. It also maintained the interest rate for the overnight deposit facility unchanged, 1.75% and maintained the interest rate for the overnight lending facility unchanged, 3.75%

In his speech, the Governor of the Bank of Albania, Gent Sejko, stated that the Albanian economy has recorded positive performance in the second half of the year.

“Economic activity has continued to grow, inflation rate remains low and under control, financial markets appear relatively calm, while credit growth rates are high. The Supervisory Council reaffirmed that the monetary policy of the Bank of Albania has played an important role in this progress, through the control and reduction of inflation, without harming the positive trend of economic growth and the indicators of the country’s financial health,” Sejko stated.
The Governor highlighted that consumer price inflation averaged 2% in October and November, maintaining the same level as in the third quarter.

He stated that, “the stability of overall inflation reflected an increase in the inflation of food items and a decrease in the inflation of rent, oil, and durable goods. Inflation for other items in the basket remained largely unchanged.”

Sejko added that the Albanian economy continued to grow in the second half of the year, at a pace similar to that of the first half, driven by the expansion of consumption, investment, and service exports. This growth was reflected in the expansion of activity in the services and industrial sectors.
“The increase in demand for goods and services has continued to be reflected in higher wages and employment. According to INSTAT data, average wages in the private sector rose by 5.4% in the third quarter, showing a slight slowdown compared to the previous quarter. This slowdown indicates easing of pressures in the labor market and serves as a foundation for more stable price and inflation trends in the future,” said the Governor.

The financial market, Sejko stated, has reflected the signals of monetary policy, showing low risk premiums and favorable interest rates.
/sm/