Subscribe to our newsletter

Albania’s Central Bank Holds Interest Rate Steady Amid Inflation Concerns

The Bank of Albania is holding its key interest rate at 3.25% to navigate persistent inflation pressures and sustain economic growth

In a strategic move to combat ongoing inflation pressures, the Bank of Albania has announced its decision to maintain the key interest rate at 3.25%. 

Governor Gent Sejko highlighted in a recent statement that despite a slight deceleration, with inflation averaging at 3.9% in the final quarter of 2023, efforts continue to align it closer to the bank’s mid-2024 target of 3%. 

This fiscal caution comes amidst a backdrop of robust economic performance, marked by a 3.5% GDP growth in the third quarter, propelled by burgeoning tourism and a surge in private sector investment, particularly within the services and construction industries. 

Additionally, the central bank has opted to keep the overnight lending rate at 4.25% and the deposit facility rate at 2.25%, as Albania navigates through its inflationary landscape and seeks to foster sustained economic growth.

Must Read

Akrapovič Revs Up Partnership with Ferrari for Hypercar Racing

Akrapovič, the esteemed Slovenian exhaust system manufacturer, has entered into a significant multi-year agreement with Italian automotive giant Ferrari. This partnership positions Akrapovič as...