The Governor of the Bank of Albania, Gent Sejko, said that tensions in the Middle East remain a major source of risk for the global and Albanian economy.
He stressed that the impact of the conflict depends on its duration and intensity. As a result, inflation risks rise, while economic growth may slow.
Sejko noted that higher oil and energy prices will cause a small and temporary increase in inflation in 2026. At the same time, economic growth will slightly weaken.
However, he said the Albanian economy remains stable. He pointed to improved financial stability and expectations that the conflict may end relatively soon.
He added that the effects are expected to be temporary. They are not expected to leave long-term damage.
Still, he warned that uncertainty remains high. Inflation risks remain tilted upward.
Therefore, the Bank of Albania kept its monetary policy unchanged. It will continue to monitor global developments closely.
/a.c/
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