Ekonomia

The Bank of Albania increases the basic interest rate

The Bank of Albania increases the basic interest rate

The Supervisory Council of the Bank of Albania decided at today's meeting to increase the basic interest rate, bringing it to 3% from the current 2.75%.

The governor of BSH, Gent Sejko, in a statement to the media, announced that the Supervisory Council has decided to increase the interest rate for 1-day loans and 1-day deposits.

"The Supervisory Council of the Bank of Albania decided in today's meeting to increase the basic interest rate by 0.25% from the level of 2.75% to the level of 3%. Also, increase the 1-day loan interest rate from 3.75% to 4%. Increase the interest rate of the 1-day deposit from the level of 1.75% to the level of 2%. The Supervisory Council judged that the high inflationary pressures originating from the internal environment are an important risk factor, firstly for respecting the objective of stability and prices, and further for the sustainable and long-term growth of the country", declared Governor Gent Sejko .

In the months of January and February 2023, inflation in the country came down, Sejko said.

"Inflation decreased during the first two months of the year, recording respective values ​​of 7.2% and 7.1% in January and February. The downward trend of inflation, started since November last year, was in line with our expectations. However, the inflation level in the first two months of the year was above expectations. In the perspective of the basket, the decline in inflation was dictated by a slower annual increase in oil and food prices, in line with the trends observed in the international market. On the other hand, the inflation of other basket items appeared relatively high and stable. From a macroeconomic point of view, this performance was dictated by the reduction of imported inflation, while internal inflationary pressures continue to remain high.