The Bank of Albania lowers the interest rate, Sejko is optimistic: Inflation fell faster than our expectations, the economy will grow this year

The governor of the Bank of Albania, Genc Sejko, held a press conference today where he announced the decision-making regarding the country's monetary policy.

After the Supervisory Council meeting, Sejko announced the easing of monetary policy because inflation is below the Bank of Albania's target.

"The fall in inflation was faster than our expectations, due to the demand for goods. Inflation at these levels will be throughout the remainder of the year, and will return to the target in 2025," declared Sejko.

The base interest rate, which is currently 3.25%, is reduced by 0.25%. the interest rate for one-day deposits as well as one-day loans is also reduced by 0.25%. This is the first reduction in the base interest rate since February 2023.

Decisions of the Bank of Albania:

On July 3, 2024, the Supervisory Council of the Bank of Albania reviewed and approved the Monetary Policy Report. After discussing the economic and monetary developments in the country and their expected progress, the Supervisory Council of the Bank of Albania decided:

To lower the basic interest rate, from the level of 3.25% to the level of 3.0%;

To reduce the one-day deposit interest rate, from 2.25% to 2.0%;

To reduce the overnight loan interest rate from 4.25% to 4.0%.