Albanian central bank cuts key rate to record-low of 2.75%.

By bne IntelliNews February 27, 2014

The supervisory board of Albania’s central bank decided on February 26 to cut the base interest rate by 0.25pps to a new historic low of 2.75% after a similar cut in December, the bank said in a statement on its website. The monetary easing reflects the bank’s expectations for weak inflationary pressures in the mid-term period that will enable meeting the inflation target while promoting aggregate demand.

The bank expects the economy to continue growing below its potential and low inflationary pressures coming from the foreign sector are is expected to be reflected in lower levels of inflation.

However, the central bank expects gradual economic recovery in 2014 thanks to rising external demand as well as improvement of private sector demand. In central bankers’ view the repayment of arrears to the private sector would improve the liquidity in the sector and facilitate the banks' balance sheets. In addition, the accumulation of financial savings and facilitator of policy stimulus is expected to materialise in a better performance of private consumption.

Related Articles

Six Albanian ministers to leave their posts under deal between government and opposition

Six ministers in Albania’s Socialist-led government will be replaced with technical ministers as part of the agreement reached between Prime Minister Edi Rama and opposition leader Lulzim ... more

Albania postpones general election by one week to June 25

Albania will now hold a general election on June 25 instead of June 18, following the agreement reached between  Prime Minister Edi Rama from the Socialist Party and the leader of ... more

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss