Albania’s C-Bank keeps its key rate unchanged at 0.5%
TIRANA (Albania), May 6 (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 to support economic growth and for a stable return of inflation to the target, 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.
The pace of economic recovery has accelerated and the economic outlook has improved over the past two quarters. Nevertheless, the economic rebound is incomplete at the current stage and the supporting factors are not yet consolidated, added Sejdo.
The economic consequences of the pandemic are still notable, as aggregate demand remains weak and unemployment continues to rise, while inflation remains below the central bank‘s 3% target.
“From this point of view, the Supervisory Council believes that the stance of monetary policy must remain accommodative. The monetary stimulus will serve to stimulate consumption and investment, which in turn will fuel the rise in employment, wages and profit margins, in line with our inflation target, âSejko said.
Albania’s central bank cut its key rate to a record high of 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%.