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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.

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