TIRANA (Albania), Aug 4 (SeeNews) – Albania’s central bank has decided to raise its key rate to 1.75% from 1.25% as inflationary pressures continue to rise, the governor of Albania has said. the central bank, Gent Sejko.

The central bank also raised the overnight lending facility interest rate to 2.75% from 2.25%, as well as the overnight deposit facility rate to 0.75% from 0.25%, Sejko said in a statement Wednesday.

“The normalization of monetary policy will create more adequate conditions to preserve price stability and allow inflation to return to the medium-term objective. At the same time, monetary policy will remain accommodative throughout the process of normalization, and it will not jeopardize the conditions for economic growth,” Sejko said.

Consumer price inflation in Albania reached 7.4% in June due to rising global food, oil and transport prices. The central bank expects inflation to remain elevated in 2022 and return to the 3% target in the first half of 2024, the statement said.

However, the projections remain uncertain, with inflationary risks pointing to the upside and those related to economic growth – to the downside, Sejko said.

Since the beginning of 2022, the Central Bank of Albania has raised its key rate twice – in July and March.