Ekonomia

The Bank of Albania increases the interest rate by 0.5%! Gent Sejko: Food prices will continue

The Bank of Albania increases the interest rate by 0.5%! Gent Sejko: Food prices
The Governor of the Bank of Albania, Gent Sejko, has stated after the meeting of the Supervisory Council that inflation has been assessed as the main risk of the economy and therefore the basic interest rate will increase by 0.5%.

Sejko added that the high levels of inflation are the main risk for the country's economy, while the increase in food prices will continue.

"The price increase is significant in all basket products. Prices on world markets are rising since the war in Ukraine, banks have raised interest rates and uncertainty remains high. Inflation will peak this second 6 months. We will normalize monetary policy to keep inflation under control. Inflation will return to target in 2024, but projections are being updated depending on the situation. High levels of inflation are the main risk for the country's economy. For this reason, in compliance with the objective of price stability, the Supervisory Council decided:

- to increase the basic interest rate by 0.5 percentage points, from the level of 1.25% to the level of 1.75%;

- to increase the one-day loan interest rate by 0.5 percentage points, from 2.25% to 2.75%;

- to increase the one-day deposit interest rate by 0.5 percentage points, from 0.25% to 0.75%. The Supervisory Council will carefully monitor the dynamics of inflationary pressures in the following period. He remains ready to intervene at the right time and with the right force to guarantee the stability of prices in the country", said Sejko.

Tiranapost.al