Albania’s central bank kept its benchmark rate unchanged at historical low 1.25% on Oct 5th in an effort to continue to stimulate the lending activity, according to an official press release. The central bank also decided to keep the interest rate for the overnight deposit facility and the interest rate for the overnight lending facility unchanged at 0.25% and 2.25%, respectively. The central bank’s decision implies that the economy and financial markets have performed in line with its expectations. The monetary policy stance has been assessed as adequate for complying with the price stability objective in the medium-term horizon.
The central bank earlier said that the economic activity has improved as a result of the increase in private domestic consumption and investments. It noted that the improvement of financial balances of firms and households have led to positive developments in the labor market, reduced uncertainties and the resurgence of the construction market. The monetary stimulus and improvement of financing conditions also contributed to the improved economic growth.