Albania’s C-Bank keeps its key rate at 0.5%
TIRANA (Albania), March 25 (SeeNews) – The Albanian central bank has decided to keep its key rate unchanged at 0.5%, as it considers the current stance of monetary policy adequate for the continuation of the economic recovery, said central 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.
Inflation recorded lower values ââthan expected in the first two months of the year, while growth in sales volume, increase in electricity consumption, improvement in tax revenues and the expansion of exports and imports signal a better performance of the economy, explained Sejko. .
However, the governor warned that expected macroeconomic developments remain downward due to the potential worsening of the epidemiological situation and its impact on the private sector.
The Bank of Albania also said that it expects economic activity to gradually normalize over the next two years, allowing for an increase in employment, wages and corporate profits and a return of inflation towards the 3% target in 2022.
Albania’s central bank cut its key rate to a record high 0.5% from 1.0% in March 2020, with the aim of mitigating the impact of the coronavirus pandemic on economic and financial health from the country. The interbank money market interest rate corridor was also revised – to 0.9% from 1.9%.