Albanian central bank keeps interest rate flat at record-low of 3.50%.

By bne IntelliNews August 29, 2013

The supervisory board of Albania’s central bank decided on August 28 to keep the base interest rate at the historic low of 3.50% after cutting it by 25bps in July, the bank said in a statement on its website. The decision is expected to create better conditions for the central bank to meet its mid-term inflation target, the statement reads.

The rate setters consider that the economic growth continues to develop below its potential, while the outlook remains weak. The future performance of the economy will be determined by low private consumption and investment activity, which results from reluctance of households and businesses to undertake long-term commitments. In addition, both domestic and external funding conditions, continue to be relatively tight.

Referring to fiscal policy, the central bank said that it has been expansionary in January to July 2013. Budget expenditure increased by 10.4% y/y in the period, mainly due to rising capital spending. At the same time, budget revenues declined by 2.6% y/y. The central bank noted that the government needs to maintain prudent fiscal policy by end-2013 in order to meet the deficit target.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

EIF signs guarantee agreements with 11 banks in Western Balkans, unlocking €750mn for small businesses

The European Investment Fund (EIF), part of the EIB Group, said on April 15 that it has signed guarantee agreements with 11 banks and financial intermediaries in the Western Balkans. These ... more

EIB surpasses investment milestone in the Western Balkans by investing €1.2bn in 2023

EIB Global, the financial arm of the European Investment Bank (EIB) for activities beyond the EU, set a new record by investing €1.2bn in the Western Balkans in 2023, the EIB said on February 9. ... ... more

Albanian banks’ profits reach ALL28bn in 2023

Albanian banks reported profits of ALL28.5bn (€271.7bn) in 2023, according to data from the Albanian Association of Banks. All banks in the country reported a profit for the year.  The most ... more

Follow Us On

Most Read

  1. Iran vs Israel: Who is better equipped for war?
    4 days ago
  2. Saudi Arabia to scale back plans for Neom city
    8 days ago
  3. BREAKING: Iraq, Syria and Jordan close airspace amid Iranian strike on Israel
    4 days ago
  4. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    5 months ago
  5. PANNIER: Caspian military drills that exclude Russia and Iran have some people in Moscow asking questions
    5 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    18 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    23 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. UBN: Russia could take the Baltic states in 48 hours
    28 days ago
  5. BRICS announce a blockchain-based payment system to create a common currency
    21 days ago

Reports

Dismiss