The Bank of Albania left its key policy rate unchanged at 2.5% at its June 2026 meeting, reiterating that the current monetary stance remains appropriate for guiding inflation back to target. The overnight deposit and overnight lending facilities were also kept steady at 1.5% and 3.5%, respectively.
Headline inflation averaged 2.9% in April–May, driven primarily by higher fuel prices, while supply-side pressures also pushed up the prices of unprocessed food and services. On the activity side, the economy grew by 3.7% year-on-year in the first quarter of 2026, underpinned by robust performance in services and construction, with available indicators suggesting that growth continued in the first half of the year.
Looking ahead, the Bank expects inflation to edge higher in the near term as a result of renewed supply shocks, before gradually declining toward target over the medium term. Economic growth is projected to remain solid over this horizon. Monetary policy decisions will continue to prioritize safeguarding price stability and containing persistent inflationary pressures.
