Albanian central bank keeps key rate unchanged at 0.5%
TIRANA (Albania), Aug.5 (SeeNews) – The central bank of Albania has decided to keep its key rate unchanged at 0.5% because it considers that the current stance of monetary policy is adequate to stimulate economic recovery and for the stable return of inflation to the target, said Bank Governor Gent Sejko.
The central bank also decided to keep the interest rate on the overnight deposit facility at 0.1% and the rate on the overnight lending facility at 0.9%, Sejko said in a statement. press release Wednesday.
The Albanian economy has recovered in recent quarters and the economic outlook has improved, while downside risks have diminished. However, inflation continues to be below target and has been subject to frequent and unexpected fluctuations in the past quarter, the governor said.
In addition, the accommodative stimulus will serve to bolster stable economic growth and increase employment and wages, the statement said.
Albania’s central bank cut its key rate to a record 0.5% from 1.0% in March 2020, with the aim of mitigating the impact of the coronavirus pandemic on the economic and financial health of the country. The interbank money market interest rate corridor was also revised – to 0.9% from 1.9%.