Central bank said in a quarterly report on Monday that the economic activity in the country has kept growing, supporting employment and wage growth, while inflation has remained at a rate of around 2%. In the meantime, lending to economy has supported household consumption and investment.

According to central bank, these developments reflect a stable macroeconomic environment and a firm banking system.

Falling inflation from the high post-pandemic rate has improved purchasing power of the Albanian citizens and has created a more stable environment for business decision-making.

The Bank of Albania stated it remains committed to price stability.

“The central bank’s decision to cut its key interest rate to 2.75% and keeping it unchanged has positively influenced national economy. This policy has led to lower financing costs for businesses and households, increasing lending and supporting economic activity. At the same time, it has helped handle inflation expectations amid external shocks, creating appropriate conditions for its return to the bank’s target,”  BoA noted in its report, underlining that “the outlook for the future remains positive.”

The report notes that the Albanian economy is expected to grow close to its potential and inflation to stabilize near the 3% target by 2026.

/r.e/a.f/u.sh/