TIRANA, August 6 – The Supervisory Council of the Bank of Albania kept the key interest rate unchanged at 2.5% on Wednesday. The council said the current monetary policy stance supports price stability and economic growth.
The decision followed the approval of the Quarterly Monetary Policy Report. Governor Gent Sejko said the Albanian economy maintained positive growth in the second quarter despite a challenging external environment. Meanwhile, he noted that activity expanded at solid rates, while inflation rose due to higher oil and energy prices and steady domestic demand. Sejko added that inflation remains controlled and close to the Bank’s target.
Bank of Albania data show that average consumer price inflation reached 3% in the second quarter. The economy continued to benefit from consumption, investments, exports, tourism revenues and favorable financial conditions. In addition, the banking sector remained stable, while private sector lending increased by 14% year-on-year, mainly through business investments and household housing loans.
The Bank expects economic activity to continue growing near its potential. However, it identified Middle East tensions as a risk for global and domestic economic prospects. The Supervisory Council also kept the overnight deposit rate at 1.5% and the overnight lending rate at 3.5%. The Bank said it will continue monitoring developments and use monetary policy tools when necessary to protect price stability.
/a.p./
The post Bank of Albania keeps key interest rate unchanged at 2.5% appeared first on RTSH English.
