FX.co ★ Albania Leaves Monetary Policy Unchanged

In May, Albania's central bank decided to maintain its benchmark interest rate at 2.75%, attributing this decision to stable inflation and a balanced economic environment. The overnight lending rate and deposit rate were also kept unchanged, at 3.75% and 1.75%, respectively. During the first quarter of 2025, inflation averaged 2%, which is below the 3% target. This was influenced by reduced import costs, a robust domestic supply, and moderate demand pressures. The bank forecasts that inflation will gradually increase to reach the target by the middle of 2026, aided by a stable exchange rate and decreasing global price pressures. Economic growth continues to be robust, primarily driven by consumption, investment, and tourism.